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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 531:

  At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?

  A. Prior to testing the new application.
  B. During testing of the new application.
  C. During implementation of the new application.
  D. During maintenance of the new application.
  A. Prior to testing the new application.

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  Explanation

• Question 532:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, the delegating leadership style is appropriate when followers have:

  A. Low maturity.
  B. Low to moderate maturity.
  C. Moderate to high maturity.
  D. High maturity.
  D. High maturity.

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  Explanation

  The dimensions of the delegating leadership style are low task and low relationship. Consequently, task- and relationship-related behaviors are low. The leader provides little direction or support because the maturity of followers is high. They are willing and able to do what is necessary.

• Question 533:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, a participating leadership style has which dimensions?

  A. High task and high relationship.
  B. High task and low relationship.
  C. Low task and high relationship.
  D. Low task and low relationship.
  C. Low task and high relationship.

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  Explanation

  A participating leadership style encourages the sharing of ideas and facilitates decision making. The leader must therefore be an effective communicator. The participating leadership style is appropriate when followers have moderate to high maturity, that is, when they are able but not willing to perform the desired actions.

• Question 534:

  Which of the following is not characteristic of a mature industry environment?

  A. Consolidation.
  B. Competitive interdependence.
  C. Falling demand.
  D. Strategic focus on deterring entry of new competitors into the marketplace.
  C. Falling demand.

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  Explanation

  Falling demand is characteristic of declining industries. These industries have sustained a permanent decrease in unit sales over the long run.

• Question 535:

  Organizations use matrix management to accomplish which of the following?

  A. To improve the chain of command.
  B. Tostrengthen corporate headquarters.
  C. To focus better on a single market.
  D. Toincrease lateral communication.
  D. Toincrease lateral communication.

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  Explanation

• Question 536:

  All of the following are true with regard to the first-in, first-out inventory valuation method except:

  A. It values inventory close to current replacement cost.
  B. It generates the highest profit when prices are rising.
  C. It approximates the physical flow of goods.
  D. It minimizes current-period income taxes.
  D. It minimizes current-period income taxes.

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  Explanation

• Question 537:

  Which of the following statements about group decision making is most likely false?

  A. There is a lack of responsibility for group decisions.
  B. Group decision making is almost always less efficient than individual decision making.
  C. The desire by individual members to be accepted by the group often restrains open disagreement.
  D. Group decision making tends to be less creative than individual decision making.
  D. Group decision making tends to be less creative than individual decision making.

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  Explanation

  Groups tend to be more creative than individuals because diversity of member views generally results in the consideration of more alternatives for solving a problem but the social pressure to conform also may inhibit creativity.

• Question 538:

  General Electric has popularized a model for competitive analysis. In this portfolio matrix,

  A. Each of the firm's businesses is represented by a circle proportional to its size.
  B. Business strength and market attractiveness are measured using a multifactor index.
  C. The number of cells varies with the number of factors used by the firm in its analysis.
  D. The four quadrants represent combinations of high or low market growth rates and business profitability.
  B. Business strength and market attractiveness are measured using a multifactor index.

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  Explanation

  The GE model is a multifactor portfolio matrix with two variables. Business strength or competitive position (BUS) is on one axis, and market attractiveness (MAT) is on the other. To measure BUS and MAT, the firm must isolate the multiple factors affecting each, quantify them, and create an index. Factors will vary with each business. The measurements will provide the values on the exes of the matrix.

• Question 539:

  Which factor signals a favorable structure in the remaining pockets of demand in a declining industry?

  A. Innovation.
  B. High switching costs.
  C. Changes in the needs or tastes of customers.
  D. Reduction in the size of a customer group.
  B. High switching costs.

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  Explanation

  The structure of the remaining pockets of demand determines whether the surviving firms can be profitable. Prospects are favorable if the pockets include price-insensitive buyers of highly differentiated products. Prospects also are favorable if buyers have little bargaining power because of high switching costs or other factors, such as the need to replace the equipment of the suppliers that have withdrawn from the industry. Furthermore, firms operating in remaining pockets may thrive if mobility barriers are high (preventing firms in other segments from competing) and if substitute products or strong suppliers are not threats. High switching costs mean that buyers are less likely to purchase substitutes. Thus, future demand is more certain, and the structure is more favorable.

• Question 540:

  An IT auditor tested management of access rights and uncovered 48 instances where employees moved to a new position within the organization, but their former access rights were not revoked. System administrators explained that they did not receive information regarding employees' new positions.

  Which of the following would be the best recommendation to address the root causes of the audit observation?

  A. Conduct an inventory of access rights of all employees who have changed their position within the last year
  B. Remove unneeded access rights for uncovered instances and reprimand system administrators for carelessness
  C. Provide system administrators with job descriptions of employees and let them determine relevant access rights
  D. Require that access rights to IT systems be ordered by process owners based on user role descriptions
  D. Require that access rights to IT systems be ordered by process owners based on user role descriptions

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  Explanation

  The root cause is the lack of a structured process for updating access rights when employees change positions. The best recommendation is to establish a role-based access control system, where access rights are determined and approved

  by process owners, not left to administrators.

  Option A is corrective but only retrospective. Option B wrongly blames administrators without addressing the systemic issue. Option C risks inconsistency, as administrators should not decide rights.

  IIA Global Technology Audit Guide (GTAG) - Access Controls.