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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 971:

  Informal groups often have many favorable effects on the members. Which of the following is one of the favorable effects informal groups have on members but that may have an unfavorable effect on the organization?

  A. Informal groups aid in problem-solving situations.
  B. Informal groups improve coordination and reduce supervision required.
  C. Informal groups reduce tension and encourage production.
  D. Informal groups provide another channel of communication.
  D. Informal groups provide another channel of communication.

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  Explanation

  The additional channel of communication is a benefit to the informal group but may cause problems for the organization depending upon what messages are being communicated. This grapevine may cause the spread of false rumors or information and could be detrimental to the organization.

• Question 972:

  A construction manager is using a distributive-bargaining approach in negotiating the price of lumber with a supplier. The construction manager will:

  A. Concede to the supplier's asking price in order to maintain a positive working relationship.
  B. Hire a mediator to negotiate the deal on behalf of the manager.
  C. Attempt to get agreement on a price within the settlement range (that is, within both the manager's and supplier's aspiration ranges).
  D. State the resistance point (that is, the highest price acceptable) and ask the supplier to concede.
  C. Attempt to get agreement on a price within the settlement range (that is, within both the manager's and supplier's aspiration ranges).

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  Explanation

  When using a distributive-bargaining approach, the negotiator operates with a maximum desired result (target point) and a minimum acceptable result (resistance point) in mind. If the ranges of feasible outcomes (aspiration ranges) overlap, an agreement is possible.

• Question 973:

  Which of the following is a likely effect of a narrow span of control?

  A. The manager closely supervises employees.
  B. Each employee is given more responsibility.
  C. The organizational structure is flexible.
  D. The manager's control over employees is limited.
  A. The manager closely supervises employees.

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  Explanation

  The span of control is the number of subordinates for which a manager or supervisor is responsible. When the span of control is narrow, a few subordinates are tightly controlled. A narrow span of control is typical of tall organizational structures.

• Question 974:

  Which of the following business practices promotes a culture of high performance?

  A. Reiterating the importance of compliance with established policies and procedures.
  B. Celebrating employees' individual excellence.
  C. Periodically rotating operational managers.
  D. Avoiding status differences among employees.
  B. Celebrating employees' individual excellence.

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  Explanation

• Question 975:

  Which of the following is not a characteristic of informal groups?

  A. Informal groups are developed to establish friendships.
  B. Informal groups tend to be small and very complex.
  C. Membership in informal groups lasts longer than membership in formal groups.
  D. Informal groups develop their own leaders.
  C. Membership in informal groups lasts longer than membership in formal groups.

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  Explanation

  Membership in formal groups tends to last longer than membership in informal groups. Membership in both groups is usually different as well.

• Question 976:

  Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?

  A. Promote closer linkage between organizational strategy and information.
  B. Provide users with greater online access to information systems.
  C. Enhance the functionality of application systems.
  D. Expand the use of automated controls.
  C. Enhance the functionality of application systems.

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  Explanation

• Question 977:

  Which of the following organization structures would most likely be able to cope with rapid changes and uncertainties?

  A. Decentralized.
  B. Centralized.
  C. Departmentalized.
  D. Tall structure.
  A. Decentralized.

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  Explanation

• Question 978:

  Which of the following statements best describes the current state of data privacy regulation?

  A. Regulations related to privacy are evolving and complex, and the number of laws is increasing
  B. Most privacy laws are prescriptive and focused on organizations' privacy rights
  C. The concept of data privacy is well established, privacy regulations are mature, and minimal regulatory changes are expected
  D. Because the concept of privacy is different around the world, data privacy is relatively unregulated
  A. Regulations related to privacy are evolving and complex, and the number of laws is increasing

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  Explanation

  IIA Business Knowledge for Internal Auditing, Data Privacy and Regulation section.

• Question 979:

  Which of the following statements is true regarding an organization's inventory valuation?

  A. The valuation will be incorrect it the inventory includes goods m transit shipped free on board (FOB) destination to another organization
  B. The valuation will be correct if the inventory includes goods received on consignment from another organization
  C. The valuation will be incorrect it the inventory includes goods in transit shipped FOB shipping point from another organization
  D. The valuation will be correct it the inventory includes goods sent on consignment to another organization
  B. The valuation will be correct if the inventory includes goods received on consignment from another organization

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  Explanation

• Question 980:

  An organization's income and retained earnings statement is as follows:

  

  Which of the following is the dividend payout ratio?

  A. 20 percent
  B. 30 percent
  C. 40 percent
  D. 50 percent
  B. 30 percent

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  Explanation