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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 571:

  According to Maslow's hierarchy of needs theory, which of the following best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

  A. Esteem by colleagues.
  B. Self-fulfillment.
  C. Sense of belonging in the organization.
  D. Job security.
  B. Self-fulfillment.

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  Explanation

• Question 572:

  Which of the following measures the operating success of a company for a given period of time?

  A. Liquidity ratios
  B. Profitability ratios
  C. Solvency ratios
  D. Current ratios
  B. Profitability ratios

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  Explanation

• Question 573:

  Victor Vroom's expectancy theory is based on the intuitively appealing idea that people have expectations of rewards derived from their unique personal motive structure, from their beliefs as to what are important rewards to them, and from their expectations of getting these incentives if they exert effort. The perceived equity of rewards leads to satisfaction or dissatisfaction and thus feeds into the next cycle's expectancies. For example, an employeewho believes s)he is compensated less well than another worker performing the same task with the same degree of skill may become dissatisfied. An important concept in the expectancy theory is:

  A. Theory C and Theory Y.
  B. Motivation = Valence x Expectancy.
  C. The two-factor theory of behavior.
  D. The management grid.
  B. Motivation = Valence x Expectancy.

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  Explanation

  Victor Vroom's expectancy theory holds that the force with which an individual is motivated is a function of the valence of a motivator whether it has a positive or negative value to the individual) and the expectancy, which is that individual's estimation of the probability that a particular action will lead to a desired outcome. Thus, motivation equals the valence times the expectancy.

• Question 574:

  Internal audit discovered that several loads of pellets were deleted from the scaling database and consequently had no sales invoices, significantly affecting financial statements. An investigation revealed that technicians had deleted the pellet loads accidentally, with no evidence of fraud.

  Which of the following actions should management implement first?

  A. Address root causes by launching a project to understand and revise the methods for granting database access rights
  B. Address the condition by limiting technicians' access to live database data
  C. Address potential risks by reconciling all sales invoices against scaling data
  D. Address investigation results by dismissing technicians who caused the disruption
  B. Address the condition by limiting technicians' access to live database data

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  Explanation

  The immediate corrective action should be to restrict technicians' access to live production data to prevent accidental deletions from recurring. This addresses the condition directly and mitigates immediate risk exposure.

  Option A (root cause project) is important but takes time and should follow immediate corrective action. Option C (reconciliation) helps detect issues but does not prevent them. Option D (dismissal) is inappropriate since the issue was

  accidental, not fraudulent.

  IIA Standards - Standard 2130: Control.

• Question 575:

  A firm has become vertically integrated by acquiring a supplier. However, throughput of thesupplier is greater than the firm's needs. Accordingly, the firm most likely has acquired:

  A. A capability less than the efficient scale.
  B. An efficient capability that provides excess output.
  C. An efficient capability that creates excess demand.
  D. An efficient capability that does not achieve economies of scale.
  B. An efficient capability that provides excess output.

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  Explanation

  Upstream (backward) or downstream (forward) integration is the acquisition of a capability that otherwise would be performed by external parties that are suppliers or customers, respectively, of the firm. Whether integration should occur depends on the firm's volume of transactions with the external parties (throughput) and the magnitude of the capability required to achieve necessary economies of scale. If the integrating firm's need is for a capability less than the efficient scale, one of its options is to acquire a capability with a costinefficient scale. The other option is to acquire an efficient capability that provides excess output (in the upstream case) or creates excess demand (from, for example, a distribution capability in the downstream case). This option will require the integrated firm to sell or buy in the open market. Thus, the second option carries the risk of having to deal with competitors.

• Question 576:

  An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?

  A. Legitimate authority
  B. Coercive authority
  C. Referent authority
  D. Expert authority
  A. Legitimate authority

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  Explanation

• Question 577:

  A bank uses customer departmentalization to categorize its departments. Which of the following groups best exemplifies this method of categorization?

  A. Community institutional and agricultural banking.
  B. Mortgages credit cards and savings
  C. South southwest and east.
  D. Teller manager and IT specialist
  A. Community institutional and agricultural banking.

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  Explanation

• Question 578:

  Which of the following management statements illustrates how natural bias can lead to poor decision making?

  A. "Although we previously agreed that we would launch a new product this year, we changed our minds and decided to terminate the launch."
  B. "Due to the crisis that arose last week, we are not prepared to provide the board with an estimate of next year's revenue."
  C. "We will continue manufacturing the same products in the same way that we always have, because this tradition has made our organization successful."
  D. "We decided to postpone expanding into the new market because of high uncertainty at this time."
  C. "We will continue manufacturing the same products in the same way that we always have, because this tradition has made our organization successful."

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  Explanation

• Question 579:

  Which of the following statements regarding database management systems is not correct?

  A. Database management systems handle data manipulation inside the tables, rather than it being done by the operating system itself in files.
  B. The database management system acts as a layer between the application software and the operating system.
  C. Applications pass on the instructions for data manipulation which are then executed by the database management system.
  D. The data within the database management system can only be manipulated directly by the database management system administrator.
  D. The data within the database management system can only be manipulated directly by the database management system administrator.

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  Explanation

• Question 580:

  Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of $3 per unit The market price of the product is $15 plus 20% selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for $18

  Which of the following methods of transfer pricing is being used?

  A. Market price.
  B. Negotiation-based.
  C. Full absorption cost
  D. Variable cost
  A. Market price.

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  Explanation