IIA IIA-CIA-PART4 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 401:

  In some organizations, first-line supervisors withhold or alter unfavorable information that the supervisors do not want higher management to know. This selective withholding of information is widely known as:

  A. Selective reception.
  B. Filtering.
  C. Regulating information flow.
  D. Perceptual defense.
  B. Filtering.

  ---

  Communication within an organization must be clear, appropriate, and properly transmitted. Distortion can be unintentional e.g., a phone line going dead), or it may follow from deliberate filtering either by the sender or an intermediary. The auditor should watch for indications that first-line or lower-level management is "filtering" out bad news or covering up irregularities.

• Question 402:

  An employee with a good background and years of experience earns a salary at the top of his or her range. Under the company's compensation program, the employee must earn a promotion in order to increase his or her salary above the usual annual increase. Which of the following is most likely to be an effect on the employee's behavior?

  A. The employee may refuse new duties or tasks.
  B. The employee may become less productive.
  C. The employee may not be motivated to improve performance.
  D. The employee may seek a position with another company.
  D. The employee may seek a position with another company.

  ---

  When an employee can earn a desired salary increase only through a promotion, s)he is likely to be motivated to perform better. If this does not result in a promotion, s)he will probably look for another job.

• Question 403:

  Using the leadership grid developed by Robert Blake and Jane Mouton where each axis has a scale of 1 to 9, a primary style of 9,9 would indicate:

  A. Little concern for production or people (impoverished management).
  B. Moderate concern for production and people to maintain status quo (middle-of-the-road management).
  C. Great concern for production and people, trust, teamwork, and commitment (team management).
  D. Primary concern for production, little concern for people (authority-compliance management).
  C. Great concern for production and people, trust, teamwork, and commitment (team management).

  ---

  A primary style that rates 9,9 on a scale of 1 to 9 indicates that it is at a maximum on both axes. Thus, there is great concern for production and great concern for people. This leadership style would emphasize output, cost control, and profit in addition to friendship, aiding employees, and addressing employee issues.

• Question 404:

  Research on the common characteristics of leaders of global firms found that:

  A. Ambition and relentless drive were more significant than honesty and trustworthiness.
  B. The leaders tended to have multidisciplinary problem solving ability.
  C. Being multilingual was unimportant.
  D. Having traveled extensively before entering the working world was relatively uncommon.
  B. The leaders tended to have multidisciplinary problem solving ability.

  ---

  A common characteristic of successful leaders of global firms is that they have effective problem- solving skills that draw from a multidisciplinary approach. The best candidates have varied backgrounds and can draw on a multitude of life experiences. They also tend to be flexible and adaptable, have good interpersonal skills, and communicate successfully.

• Question 405:

  An adhocracy is most likely to be found in what kind of organizational structure?

  A. Mechanistic.
  B. Organic.
  C. Bureaucratic.
  D. Classical.
  B. Organic.

  ---

  The organic structure is at the opposite end of the design continuum from a mechanistic organization. An organic structure has groupings of similar persons and resources in subunits horizontal specialization); relatively few policies, procedures, and rules; less stringent formal controls; decentralized staff; and matrix or divisional departmentation.

• Question 406:

  Which of the following statements is false according to communications theory?

  A. The process has three elements:sender, medium, receiver.
  B. Two-directional communication is usually most effective.
  C. Communication is the message actually received, not the message that is transmitted.
  D. Informal communications are used by effective managers.
  A. The process has three elements:sender, medium, receiver.

  ---

  The communication process has five elements:the sender, the symbols in which the message is encoded, the medium through which the message is sent, the receiver, and feedback.

• Question 407:

  The decision to engage in the vertical integration of a firm is in large part a function of an analysis of throughput and economies of scale. If throughput is less than the efficient scale, the firm:

  A. Should acquire a capability equal to the firm's throughput.
  B. Must sell or buy in the open market if the firm vertically integrates at the efficient scale.
  C. Should engage in quasi-integration.
  D. Should not vertically integrate.
  B. Must sell or buy in the open market if the firm vertically integrates at the efficient scale.

  ---

  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 cost inefficient scale. The other option is to acquire an efficient capability that provides excess output (in the upstream case) orcreates 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 408:

  A corporation adheres to an open-systems perspective belief that the organization must adapt to changes in the environment to be successful. Which of the following would be inconsistent with the corporation following an open-systems framework?

  A. The corporation attempts to utilize resources in order to be self-sufficient.
  B. The corporation experiments with different production methods to find the method that is the most efficient and effective.
  C. The corporation emphasizes the overall result of projects instead of the individual inputs.
  D. The corporation requires employees to undergo monthly training seminars.
  A. The corporation attempts to utilize resources in order to be self-sufficient.

  ---

  Open systems acknowledge the need to interact with their environment and therefore are not able to be self-sufficient. Self-sufficiency is a quality inherent in closed systems because closed systems try to avoid interaction with the external environment.

• Question 409:

  All of the following statements about communication are true except:

  A. Written communication inhibits feedback.
  B. Managers spend more of their workday involved in oral communication than written communication.
  C. Written communication provides a permanent record.
  D. Written communication is usually better when the message is non-routine and personal.
  D. Written communication is usually better when the message is non-routine and personal.

  ---

  Written communication is usually better when the message is routine and impersonal. A nonroutine message can be better communicated orally. Written communication also offers the advantage of providing a permanent record of the message, but it inhibits immediate feedback because the two parties are not in direct contact. Breakthroughs in electronic technology, such as computers that can recognize the human voice, may in the future blur the distinction between oral and written communication.

• Question 410:

  Tolerating silence, asking open-ended questions, and paraphrasing are three aids to more effective:

  A. Meetings.
  B. Listening.
  C. Interviews.
  D. Feedback.
  B. Listening.

  ---

  Listening entails decoding and understanding the first message sent. The sender then becomes a listener with respect to the feedback. Hence, listening is necessary at both ends of the communication channel. Other aids to effective listening are using body language to encourage the speaker, showing appropriate emotion to signify sympathy, understanding and correcting for one's biases, avoiding making premature judgments, and briefly summarizing what has been said.