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

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 421:

  Which one of the following statements regarding communication along the grapevine in an organization is false?

  A. By maintaining open channels of communication, managers can minimize the damage thegrapevine can do in an organization.
  B. Attempts to totally eliminate the grapevine are unlikely to succeed.
  C. The grapevine communication network can exist in several patterns.
  D. The grapevine is rumor-mongering, and managers should not use the grapevine.
  D. The grapevine is rumor-mongering, and managers should not use the grapevine.

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  A grapevine is the name of the informal communication channel that exists in all organizations. The grapevine exists wherever there are people. Although the grapevine is usually accurate, it can carry gossip and rumor. The effective manager stays tuned into the grapevine and uses it constructively.

• Question 422:

  Which of the following is the best measure of productivity to use to evaluate several departments in a large retail store?

  A. Number of customers served per employee per day.
  B. Revenue per square foot.
  C. Number of units sold per department per day.
  D. Average number of units stocked per month per department.
  B. Revenue per square foot.

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  Productivity is the ratio of real output to a unit of input. Increased productivity is the goal of every organization because its effect is to improve the ultimate measures of performance, such as the profits of a business. For a retail store, a critical output of interest is revenue per square foot. The floor space in the store is a limited resource whose productivity should be analyzed.

• Question 423:

  Which of the following perceptual errors is the tendency for one party to attribute his/her traits to the other party when communicating?

  A. Expectancy.
  B. Projection.
  C. The halo effect.
  D. Stereotyping.
  B. Projection.

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  Perception is the process used to adapt the message to the receiver during encoding or to interpret the message from the sender when decoding. Perceptual errors cause misinterpretation of the intended message. Projection is the tendency for the sender to attribute his/her traits, values, and emotions to the receiver and vice versa.

• Question 424:

  Which of the following is not a limit on emerging industry development?

  A. Raw materials and components.
  B. Subsidies.
  C. Product quality.
  D. Regulatory approval.
  B. Subsidies.

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  Subsidies are a structural characteristic of an emerging market. If a subsidy is given by the government or other party, it usually assists the growth of the new industry instead of hindering it. Subsidies tend to focus on radically new technology or technology in which societal concern is strong.

• Question 425:

  The creation of regional free trade zones is a global phenomenon. Trade barriers are lowered in these areas, and other steps are taken to promote economic cooperation. For example, a common currency has been adopted by the nations of:

  A. NAFTA.
  B. Mercosul.
  C. APEC.
  D. The European Union.
  D. The European Union.

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  The European Union (Eli) is a collection of 27 European nations that have lowered trade barriers among member states, and most of the nations share a common currency and trade policy. The euro is the common currency of the European Union.

• Question 426:

  In which one of the following statements is the use of accounting jargon an impediment to communication between accountants and non-accounting professionals?

  A. "Labor standards tell how much time workers should take to assemble a computer."
  B. The assigned auditor trying to decide whether the million dollar disbursement should be expensed or capitalized."
  C. "In carrying out variance analysis, the assigned auditor is seeking the possible reasons why the net income shown in the financial statements for the year 1996 is 20% less than expected."
  D. "An accounting department in a factory is classified as a service because the accounting department allows the departments actually involved in the making of products freedom from bookkeeping chores."
  B. The assigned auditor trying to decide whether the million dollar disbursement should be expensed or capitalized."

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  The use of jargon leads to communication problems when a specialist tries to send a message to a non-specialist. The use of the phrase "expensed or capitalized" is a use of jargon in that a non-accountant might not understand the technical meaning of the terms. Thus, the recipient of the message may not be able to provide a clear answer.

• Question 427:

  An engagement to review an organization's budget process has revealed that department heads frequently circumvent budget controls by actions such as padding their budgets and concealing opportunities to cut costs. One of the engagement recommendations involves forming a group composed of department heads to find a solution for this problem. Which one of the following methods is likely to generate a high level of commitment to the solution among members of the group?

  A. The brainstorming technique in which group members orally identify as many alternatives as possible without criticism from other members.
  B. A mandate from top management.
  C. The Delphi technique in which a series of questionnaires is used to arrive at a consensus.
  D. An open discussion of the problem and potential solutions until a consensus is reached.
  D. An open discussion of the problem and potential solutions until a consensus is reached.

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  Interacting groups, that is, traditional groups in which individuals meet face-to-face and interact in customary ways, potentially foster the greatest commitment to the solution reached. When individuals who must implement the solution participate in the decision through open discussion and arrive at a consensus, they are usually inclined to accept the decision.

• Question 428:

  Two individuals negotiate the details and put a deal in written form. The individuals have developed a good relationship and future negotiations will benefit. Which step of thevalue- addednegotiating process has taken place?

  A. Perfect the deal.
  B. Identify options.
  C. Design alternative deal packages.
  D. Select a deal.
  A. Perfect the deal.

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  The individuals performed step five of value-added negotiation by perfecting the deal. This step is characterized by negotiating details and putting the deal in written form. The process creates relationships that will benefit later negotiations.

• Question 429:

  The organizational culture may encourage politics by creating unreasonable obstacles to group and individual advancement. Which type of political tactic involves taking credit for another person's work?

  A. Loyalty cliques.
  B. Destructive competition.
  C. Empire building.
  D. Posturing.
  D. Posturing.

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  Posturing is an attempt to make a good impression, for example, by taking credit for others' work or seeking to stay one jump ahead of a rival.

• Question 430:

  Two managers were discussing the merits of goal setting to improve employee performance. One manager felt that specific goals should not be established and that, to provide for flexibility, only generalized goals should be used. The other manager felt that specific, difficult goals produce the best results. As the discussion continued, other methods of goal setting were identified. Select the best method for setting goals.

  A. The manager should provide generalized goals.
  B. The manager should select specific, difficult goals.
  C. The employee should develop generalized goals and obtain management concurrence.
  D. The employee should develop specific, difficult goals and obtain management concurrence.
  D. The employee should develop specific, difficult goals and obtain management concurrence.

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  According to Edwin Locke's goal-setting theory, specific, difficult goals to which the employee is committed provide the best motivation tool. Performance improves when goals are specific rather than general, difficult rather than easy, and self-set rather than imposed by others. Feedback, especially self-generated feedback, also improves performance compared with lack of feedback. Commitment to goals, that is, a determination not to reduce or abandon them, and self-efficacy, that is, a belief in one's ability to accomplish the task, are additional qualities that result in better performance.