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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 521:

  Where complex problems need to be addressed, which of the following communication networks would be most appropriate?

  A. Chain.
  B. All-channel.
  C. Circle.
  D. Wheel.
  B. All-channel.

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  Explanation

• Question 522:

  Which of the following should the chief audit executive agree upon with the board before starting an external assessment of the internal audit function?

  A. The audit areas that should be reviewed
  B. The level of testing that will be required
  C. The qualifications needed on the external assessment team
  D. The specialized skills that each external assessment team member needs
  C. The qualifications needed on the external assessment team

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  Explanation

  Before an external assessment of the internal audit activity, the CAE should agree with the board on the qualifications and independence of the external assessor or assessment team. This ensures credibility and compliance with the IIA's

  Quality Assurance and Improvement Program (QAIP) requirements.

  Options A and B (specific audit areas or testing levels) are not matters for board approval in external assessments. Option D (specialized skills) is relevant but not as essential as overall qualifications and competence.

  IIA Standards - Standard 1312: External Assessments; Practice Advisory 1312-1.

• Question 523:

  The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:

  A. Test marketing
  B. Experimentation
  C. Segmentation
  D. Positioning
  A. Test marketing

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  Explanation

• Question 524:

  A vertically integrated organization is best described as one that:

  A. Owns all of its production facilities.
  B. Manufactures the component parts used in its product.
  C. Is departmentalized by product or service.
  D. Fosters very narrow span of control.
  B. Manufactures the component parts used in its product.

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  Explanation

  An organization is vertically integrated if it unites sources of supply, the production of finished goods, and the marketing of the product. In other words, complete vertical integration combines all phases of the production and delivery of products or services.

• Question 525:

  The organizational culture may encourage politics by creating unreasonable obstacles to group and individual advancement. Which type of political tactic involves taking credit for another person's work?

  A. Loyalty cliques.
  B. Destructive competition.
  C. Empire building.
  D. Posturing.
  D. Posturing.

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  Explanation

  Posturing is an attempt to make a good impression, for example, by taking credit for others' work or seeking to stay one jump ahead of a rival.

• Question 526:

  Distribution channels ensure that goods in international trade are transferred successfully to end users. Where are intermediaries, such as trading companies, most likely selected?

  A. Channels within nations.
  B. Export department of the seller.
  C. International division of the seller.
  D. Channels between nations.
  D. Channels between nations.

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  Explanation

  Channels between nations carry goods to foreign borders. They include air, land, sea, or rail transportation channels. At this stage, in addition to transportation methods, intermediaries are selected (e.g., agents or trading companies), and financing and risk management decisions are reached.

• Question 527:

  According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time ?

  A. Process element.
  B. Key principles.
  C. Maturity model.
  D. Assurance.
  C. Maturity model.

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  Explanation

• Question 528:

  An organization wants to offer a standard product across all markets but also wants to differentiate the product to fit local demands in different geographic markets and to meet government regulations. Which of the following strategies may help the organization achieve its goal?

  A. Globalization strategy
  B. Transnational strategy
  C. Multidomestic strategy
  D. Export strategy
  B. Transnational strategy

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  Explanation

• Question 529:

  Which of the following statements is false according to communications theory?

  A. The process has three elements:sender, medium, receiver.
  B. Two-directional communication is usually most effective.
  C. Communication is the message actually received, not the message that is transmitted.
  D. Informal communications are used by effective managers.
  A. The process has three elements:sender, medium, receiver.

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  Explanation

  The communication process has five elements:the sender, the symbols in which the message is encoded, the medium through which the message is sent, the receiver, and feedback.

• Question 530:

  In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?

  A. Giving assurance that risks are evaluated correctly.
  B. Developing the risk management strategy for the board's approval.
  C. Facilitating the identification and evaluation of risks.
  D. Coaching management in responding to risk.
  A. Giving assurance that risks are evaluated correctly.

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  Explanation