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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 831:

  Dutch researcher Geert Hofstede has examined the cultural dimensions of organizational behavior in 40 countries. The United States ranked the highest in which dimension?

  A. Power distance.
  B. Uncertainty avoidance.
  C. Individualism.
  D. Masculinity.
  C. Individualism.

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  Explanation

  The individualism-collectivism dimension addresses whether the organization or individual must meet his/her own security needs.

• Question 832:

  A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost:

  A. Leadership strategy.
  B. Focus strategy.
  C. Differentiation strategy.
  D. Containment strategy.
  B. Focus strategy.

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  Explanation

  A cost focus strategy aims at cost leadership in a particular segment, such as a regional market or a specialty product line. The rationale for a focus strategy is that the narrower market can be better served.

• Question 833:

  A multinational organization allows its employees to access work email via personal smart devices. However, users are required to consent to the installation of mobile device management (MDM) software that will remotely wipe data in case of theft or other incidents.

  Which of the following should the organization ensure in exchange for the employees' consent?

  A. That those employees who do not consent to MDM software cannot have an email account.
  B. That personal data on the device cannot be accessed and deleted by system administrators.
  C. That monitoring of employees' online activities is conducted in a covert way to avoid upsetting them.
  D. That employee consent includes appropriate waivers regarding potential breaches to their privacy.
  D. That employee consent includes appropriate waivers regarding potential breaches to their privacy.

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  Explanation

• Question 834:

  Groupthink is defined as:

  A. The tendency to conform and ignore relevant individual Input that is at variance with the majority opinion.
  B. The guidance of groups based upon self-set standards of performance and behavior.
  C. The members of a group developing a solution to a problem after all the relevant information has been considered.
  D. A way of brainstorming ideas to address an issue presented to a group by management.
  A. The tendency to conform and ignore relevant individual Input that is at variance with the majority opinion.

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  Explanation

  Research into cohesive groups has revealed the prevalence of groupthink. Groupthink is conformity to a group's opinion despite information that it may be incorrect.

• Question 835:

  An organization produces finished lumber for the construction industry. Which of the following inventory valuation methods will lead to the highest profit, assuming all other variables remain the same in a period of rising material costs?

  A. Average-cost method
  B. Weighted cost method
  C. First-in, first-out (FIFO)
  D. Specific identification
  C. First-in, first-out (FIFO)

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  Explanation

• Question 836:

  Price wars are most likely in a(n):

  A. Emerging industry.
  B. Mature industry.
  C. Declining industry.
  D. Fragmented industry.
  C. Declining industry.

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  Explanation

  Price wars are more likely in the decline phase. Rivalry is more intense when the product is viewed as a commodity, fixed costs and exit barriers are high, firms have strategic reasons for remaining and the resources to do so, and firms are relatively equally strong. In this environment, firms are tempted to take ill-advised competitive actions because of uncertainty about their positions.

• Question 837:

  According to IIA guidance, which of the following statements is true regarding penetration testing?

  A. Testing should not be announced to anyone within the organization to solicit a real-life response.
  B. Testing should take place during heavy operational time periods to test system resilience.
  C. Testing should be wide in scope and primarily address detective management controls for identifying potential attacks.
  D. Testing should address the preventive controls and management's response.
  D. Testing should address the preventive controls and management's response.

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  Explanation

• Question 838:

  A firm that sells in foreign markets should consider all aspects of how products move from the firm to ultimate users. Where in the whole channel are marketing mix decisions most likely made?

  A. Export department of the seller firm.
  B. Import department of the buyer firm.
  C. Channels within nations.
  D. Channels between nations.
  A. Export department of the seller firm.

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  Explanation

  Distribution channels are a necessity to ensure that goods are successfully transferred from the production facility to end users. These channels include three distinct links that must work smoothly together.

  1. The international marketing headquarters (export department of international division) is where decisions are made with regard to the subsequent channels and other aspects of the marketing mix.

  2. 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.

  3. Channels within nations take the goods from the border or entry point to the ultimate users of the products. Among nations, the number of levels of distribution, the types of channels, and the size of retailers vary substantially.

• Question 839:

  Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

  A. Increasing complexity over time .
  B. Interface with corporate systems.
  C. Ability to meet user needs.
  D. Hidden data columns or worksheets.
  C. Ability to meet user needs.

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  Explanation

• Question 840:

  The least risky method of entering a market in a foreign country is by

  A. Indirect exports.
  B. Licensing.
  C. Direct exports.
  D. Direct investments.
  A. Indirect exports.

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  Explanation

  An indirect export strategy operates through intermediaries, such as home-country merchants who buy and resell the product, home-country agents who negotiate transactions with foreign buyers fora commission, cooperatives that represent groups of sellers, and export-management firms that receive fees for administering the firm's export efforts. Indirect export requires lower investment than direct export and is less risky because of the intermediaries' expertise.