IIA-CIA-PART3 practice questions 181–190

1. Question 181 · 336 in bank

   Which of the following characteristics applies to an organization that adopts a flat structure?

   • AThe structure is dispersed geographically.
   • BThe hierarchy levels are more numerous.
   • CThe span of control is wide.
   • DThe lower-level managers are encouraged to exercise creativity when solving problems.

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   Answer: C

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2. Question 182 · 336 in bank

   A manager who is authorized to make purchases up to a certain dollar amount approves the set-up of a fictitious vendor and subsequently initiates purchase orders. Which of the following controls would best address this risk?

   • AEstablish separate vendor creation and approval teams.
   • BDevelop and distribute a code of conduct that prohibits conflicts of interest.
   • CPerform a regular review of the vendor master file.
   • DRequire submission of a conflict-of-interest declaration.

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   Answer: B

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3. Question 183 · 336 in bank

   In which type of business environment are price cutting strategies and franchising strategies most appropriate?

   • AEmbryonic, focused.
   • BFragmented, decline.
   • CMature, fragmented.
   • DCompetitive, embryonic.

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   Answer: C

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4. Question 184 · 336 in bank

   In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?

   • AIt uses the same products in all countries.
   • BIt centralizes control with little decision-making authority given to the local level.
   • CIt is an effective strategy when large differences exist between countries.
   • DIt provides cost advantages, improves coordinated activities, and speeds product development.

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   Answer: C

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5. Question 185 · 336 in bank

   Which of the following practices impacts copyright issues related to the manufacturer of a smart device?

   • ASession hijacking.
   • BJailbreaking.
   • CEavesdropping.
   • DAuthentication.

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   Answer: B

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6. Question 186 · 336 in bank

   Which of the following is a likely result of outsourcing?

   • AIncreased dependence on suppliers.
   • BIncreased importance of market strategy.
   • CDecreased sensitivity to government regulation.
   • DDecreased focus on costs.

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   Answer: A

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7. Question 187 · 336 in bank

   Which of the following cost of capital methods identifies the time period required to recover the cost of the capital investment from the annual inflow produced?

   • ACash payback technique.
   • BAnnual rate of return technique.
   • CInternal rate of return method.
   • DNet present value method.

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   Answer: A

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8. Question 188 · 336 in bank

   A bond that matures after one year has a face value of $250,000 and a coupon of $30,000. If the market price of the bond is $265,000, which of the following would be the market interest rate?

   • ALess than 12 percent.
   • B12 percent.
   • CBetween 12.01 percent and 12.50 percent.
   • DMore than 12.50 percent.

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   Answer: A

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9. Question 189 · 336 in bank

   Which of the following security controls would be the most effective in preventing security breaches?

   • AApproval of identity request.
   • BAccess logging.
   • CMonitoring privileged accounts.
   • DAudit of access rights.

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   Answer: D

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10. Question 190 · 336 in bank

    The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity's (IAA's) processes. He would like to reduce the time to complete audits and improve client ratings of the IAA. Which of the following staffing approaches is the CAE most likely to select?

    • AAssign a team with a trained audit manager to plan each audit and distribute field work tasks to various staff auditors.
    • BAssign a team of personnel who have different specialties to each audit and empower team members to participate fully in key decisions.
    • CAssign a team to each audit, designate a single person to be responsible for each phase of the audit, and limit decision making outside of their area of responsibility.
    • DAssign a team of personnel who have similar specialties to specific engagements that would benefit from those specialties and limit key decisions to the senior person.

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    Answer: C

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IIA-CIA-PART3 practice, question 181. 336 questions available.