IIA-CIA-PART3 Online Practice Questions and Answers

A firm in a declining industry ordinarily adopts one of four strategies. A firm that follows a:

A. Quick divestment strategy should have divested during the maturity phase.

B. Leadership strategy may assume that success will enable the firm to subsequently pursue a harvest strategy.

C. Harvest strategy seeks a pocket of stable demand.

D. Niche strategy is engaged in a gradual liquidation.

Advantages of decentralization include all of the following except:

A. Decisions are more easily made.

B. Managers' motivation increases.

C. Greater uniformity in decisions.

D. Problems can be dealt with on the spot.

Which of the following is false concerning job motivation?

A. Increased planning and decision making in a job is a positive motivator only if accompanied by a salary increase.

B. Recognition of achievement motivates performance.

C. Poor working conditions create dissatisfaction with the job.

D. Poor interpersonal relations create dissatisfaction with the job.

Which one of the following techniques is not generally recognized as an effective conflict resolution technique for management to use in a dispute between employees?

A. Accommodation - management encourages a high degree of cooperation and a low degree of assertiveness.

B. Competition - management encourages the parties to seek their own interests, regardless of the effect on each other.

C. Reorganization - management transfers one of the disputants to another department.

D. Compromise - management persuades each party to make concessions.

Which of the following factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?

A. A sense of achievement.

B. Promotion.

C. Recognition.

D. An incremental increase in salary.

The economic order quantity can be calculated using the following formula: Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

A. Decrease by about 17 percent.

B. Decrease by about 7 percent.

C. Increase by about 7 percent.

D. Increase by about 17 percent.

An organization has recorded the following profit and expenses: Profit before interest and tax $200,000 Sales $2,300,000 Purchases of materials $700,000 Interest expenses $30,000

If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

A. $34,000

B. $51,000

C. $60,000

D. $320,000

According to IIA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

A. Report identifying data that is outside of system parameters.

B. Report identifying general ledger transactions by time and individual.

C. Report comparing processing results with original input.

D. Report confirming that the general ledger data was processed without error.

When examining an organization's strategic plan, an internal auditor should expect to find which of the following components?

A. Identification of achievable goals and timelines.

B. Analysis of the competitive environment.

C. Plan for the procurement of resources.

D. Plan for progress reporting and oversight.

A manager decided to build his team's enthusiasm by giving encouraging talks about employee empowerment, hoping to change the perception that management should make all decisions in the department.

The manager is most likely trying to impact which of the following components of his team's attitude?

A. Affective component.

B. Cognition component.

C. Thinking component.

D. Behavioral component.