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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 771:

  Two managers have been informed that their units will be relocated to a new site. The units are to share space at the new office location. The managers have been arguing for several weeks over the allocation of space and the location of offices. This disagreement is threatening the relocation schedule and disrupting other projects. The managers' supervisor has now becomeinvolved in the conflict and must try to minimize the potential for hurt feelings while resolving the problem quickly. Identify the supervisor's best approach for this situation.

  A. Sit down with the managers and determine a solution.
  B. Design a floor plan and tell the managers who occupies what space.
  C. Remind the managers that the company needs their cooperation in this effort so that costs can be reduced
  D. Tell the managers not to worry and that problems like this have a way of working themselves out.
  A. Sit down with the managers and determine a solution.

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  Explanation

  Problem solving is a means of confronting the conflict and removing its causes. The emphasis is on facts and solutions, not personalities and assignment of blame. The disadvantage is that problem solving takes time. In this situation, a three

  party negotiation stressing a win-win attitude is appropriate. Negotiation should be feasible because the parties have overlapping interests.

• Question 772:

  Which approach to understanding leadership focuses on the social skills, judgment, and maturity of the leader?

  A. Behavioral styles theory.
  B. Emotional intelligence theory.
  C. The Ohio State model.
  D. Path-goal theory.
  B. Emotional intelligence theory.

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  Explanation

  A recent traitist approach is based on the emotional intelligence of leaders, that is, their social skills and judgment, maturity, and emotional control. These abilities can be learned, especially when a manager or employee understands that

  immaturity, erratic behavior, and uncontrolled negative emotions have a bad effect on the workplace. According to Daniel Goleman, a leader can acquire social capital through exhibiting the following leadership traits:

  1Self-awareness is knowing oneself.

  2Self-management is the ability to prevent one's mood swings from interfering with positive relationships.

  3Social awareness is understanding the actions and emotions of others. This ability helps a person to adapt in a productive way. 4Relationship management is an ability possessed by a person who communicates and resolves conflict

  effectively. Humor and a benign approach are characteristics of people who develop good relationships.

• Question 773:

  A lack of cohesiveness and attractiveness in a group may lead to

  A. A lack of commitment by the members.
  B. Dissension in the formal organization.
  C. Cooperation among group members.
  D. Substantial group member interaction.
  A. A lack of commitment by the members.

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  Explanation

  Commitment to a group depends on the group's attractiveness and cohesiveness. A lack of commitment may lead to members joining other groups and bad experiences with the group.

• Question 774:

  Teams may be built by all the following methods except:

  A. Participating in a series of outdoor challenges.
  B. Incorporating a number of interdependent roles.
  C. Rating group effectiveness.
  D. Exerting direct pressure on dissenters.
  D. Exerting direct pressure on dissenters.

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  Explanation

  Exerting direct pressure on dissenters is a symptom of groupthink. One of the perils of cohesive groups is the tendency to conform and ignore relevant individual input that varies from the group opinion.

• Question 775:

  The most likely strategic benefit to a firm of upstream integration is:

  A. Avoidance of input cost distortion.
  B. Elimination of a customers' power to obtain an unjustifiably low price.
  C. Assurance of demand.
  D. An increase of incentives.
  A. Avoidance of input cost distortion.

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  Explanation

  Integration benefits include offsetting the bargaining power of strong suppliers and customers. If such parties have returns greater than the opportunity cost of capital, the firm benefits even if no other advantages accrue from integration. Thus, upstream integration eliminates input cost distortion caused by the supplier's power, and downstream integration eliminates the customer's power to obtain an unjustifiably low price. Moreover, the special costs of dealing with powerful parties will also be eliminated. Upstream integration also has the advantage of disclosing the true cost of the input provided by the powerful supplier. This information helps the firm to adjust its input mix and prices.

• Question 776:

  A newly hired chief audit executive (CAE) reviews and will revise the existing internal audit strategy. What should the CAE initially refer to when revising the internal audit strategy?

  A. Legal and regulatory requirements
  B. Organization-wide risk assessment results
  C. Key internal control activities
  D. Organizational business objectives
  D. Organizational business objectives

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  Explanation

  The internal audit strategy must be aligned with the organization's business objectives. This ensures that the internal audit function provides assurance and advisory services that support the achievement of strategic goals. While risk

  assessment (Option B), controls (Option C), and compliance (Option A) are important inputs, they are secondary to aligning with organizational objectives, which is the foundation of strategy.

  IIA Standards - Standard 2010: Planning; IIA Practice Guide - Developing the Internal Audit Strategic Plan.

• Question 777:

  Which of the following management approaches may help eliminate employee dissatisfaction, but would not necessarily motivate workers to high achievement levels?

  A. Providing growth opportunities for employees.
  B. Offering employee recognition incentives in the organization.
  C. Offering competitive employee compensation packages.
  D. Assigning more responsibility to successful employees.
  C. Offering competitive employee compensation packages.

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  Explanation

• Question 778:

  Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

  A. Political.
  B. Financial.
  C. Social.
  D. Tariff.
  A. Political.

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  Explanation

• Question 779:

  Which strategy for a global marketing organization emphasizes relatively strong central control?

  A. Global.
  B. Multinational.
  C. Creation of an international division.
  D. Global
  A. Global.

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  Explanation

  A global strategy regards the world as one market. The product is essentially the same in all countries. Central control of the production process is relatively strong. Faster product development and lower production cost are typical.

• Question 780:

  In reviewing an organization's IT infrastructure risks, which of the following controls is to be tested as part of reviewing workstations?

  A. Input controls.
  B. Segregation of duties.
  C. Physical controls.
  D. Integrity controls.
  D. Integrity controls.

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  Explanation