IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 391:

  According to Porter, which of the following is associated with fragmented industries?

  A. Weak entrance barriers.
  B. Significant scale economies.
  C. Steep experience curve.
  D. Strong negotiation power with suppliers.
  A. Weak entrance barriers.

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  Explanation

• Question 392:

  A team member who focuses on the overall perspective and reminds others of the vision, mission, or goal of the team informally assumes the role of a:

  A. Contributor.
  B. Collaborator.
  C. Communicator.
  D. Challenger.
  C. Communicator.

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  Explanation

  A communicator is a people-oriented member. S)he is process-driven and an effective listener. Thus, a communicator plays the role of a facilitator and a consensus builder.

• Question 393:

  An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?

  A. Normalize the data
  B. Obtain the data
  C. identify the risks
  D. Analyze the data
  D. Analyze the data

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  Explanation

• Question 394:

  Which of the following is an example of upward communication?

  A. Management's notices on bulletin boards.
  B. Grievance actions.
  C. Informational inserts in pay envelopes.
  D. Personnel policy manuals.
  B. Grievance actions.

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  Explanation

  Grievance actions are a formal means of bringing employee dissatisfaction to the attention of management, i.e., from the bottom upward.

• Question 395:

  Which of the following is a characteristic of a mechanistic organization?

  A. Knowledge by employees tends to be task-specific.
  B. Self-control is preferred to hierarchical control.
  C. Superiors usually have an informational and advisory role.
  D. Communication is horizontal.
  A. Knowledge by employees tends to be task-specific.

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  Explanation

  A mechanistic organization designs tasks that are specifically designed and have little flexibility. Therefore, the mechanistic organization focuses on task-specific knowledge by its employees.

• Question 396:

  Which of the following statements is true regarding reversing entries in an accounting cycled?

  A. Reversing all previous closing adjustments is a mandatory step in the accounting cycle
  B. Reversing entries should be completed at the end of the next accounting period after recording regular transactions of the period
  C. Reversing entries are identical to the adjusting entries made in the previous period.
  D. Reversing entries are the exact opposite of the adjustments made in the previous period.
  D. Reversing entries are the exact opposite of the adjustments made in the previous period.

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  Explanation

• Question 397:

  Coping with fragmentation requires strategic positioning. Which strategic position is a focus strategy that enhances bargaining power with suppliers and increases differentiation?

  A. Backward integration.
  B. Tightly managed decentralization.
  C. Specialization by product type or segment.
  D. Developing formula facilities.
  C. Specialization by product type or segment.

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  Explanation

  Specialization by product type or segment is a focus strategy that is used to cope with fragmentation. This strategy may enhance bargaining power with suppliers and increase differentiation because of perceived expertise and image. The downside is reduced growth opportunities.

• Question 398:

  Which of the following concepts of managerial accounting is focused on allocating overheads to products?

  A. Theory of constraints
  B. Just-in-time method
  C. Activity-based costing
  D. Break-even analysis
  C. Activity-based costing

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  Explanation

• Question 399:

  Which of the following financial statements provides the best disclosure of how a company's money was used during a particular period?

  A. Income statement.
  B. Owner's equity statement.
  C. Balance sheet.
  D. Statement of cash flows.
  D. Statement of cash flows.

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  Explanation

• Question 400:

  Which of the following is accurate regarding help desk service providers?

  A. Performance results, deficiencies, and remediation should not be used as criteria for ongoing vendor evaluation.
  B. Turn-around time cannot always be defined for each level of service in complex environments.
  C. Ongoing monitoring procedures that measure and compare actual performance to the expected service-level parameters must be set by the service provider.
  D. Any problems troubleshooting can be categorized as a help desk service.
  C. Ongoing monitoring procedures that measure and compare actual performance to the expected service-level parameters must be set by the service provider.

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  Explanation