IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 451:

  When planning for successful negotiations, the negotiator should:

  A. Understand the implications for both sides if the negotiation fails.

  B. Concentrate solely on the issues in the negotiation at hand.

  C. Not deviate from stated positions.

  D. Depend on the initial research prepared for the negotiation.

  Correct Answer: A

  Negotiators should assess the best alternatives for both themselves and the other parties to determine their relative strength in the negotiation process. If alternatives are not readily available or are unattractive, a party is under additional pressure to make the negotiation work.

• Question 452:

  In regard to effective negotiation, a win-win attitude is characterized by:

  A. Seeking mutual benefit and satisfaction.

  B. Cooperative.

  C. It promotes support of, and commitment to, the agreement.

  D. All of the answers are correct.

  Correct Answer: D

  In regards to effective negotiation, a win-win attitude is characterized by seeking mutual benefit and satisfaction, being cooperative, and promoting support of, and commitment to, the agreement. In contrast to a win-win attitude, a win-lose attitude is competitive and is a zerosum game instead of a positive-sum game.

• Question 453:

  A reasonable BATNA (best alternative to a negotiated agreement) protects against bad decisions caused by the following:

  I. Framing error

  II. Escalation of commitment

  III.

  Overconfidence

  A.

  I and Ill only.

  B.

  I, II, and Ill.

  C.

  I only.

  D.

  II and Ill only.

  Correct Answer: B

  A reasonable BATNA protects against bad decisions caused by the following:framing error, escalation of commitment, and overconfidence. Framing error is a perceptual problem. The presentation or context of information may bias its interpretation and the resulting decision. Escalation of commitment is adherence to a failing course of action when a purely objectivedecision maker would abandon it. Overconfidence is the common tendency to overestimate the chances of success.

• Question 454:

  Which of the following is an example of a two-party negotiation?

  A. A person sells a car to a used car dealer.

  B. A person requests a financial institution to pay another person.

  C. A person sells stock through a broker.

  D. A person sells a house through a real estate agent.

  Correct Answer: A

  A person's sale of a car to a used car dealer is an example of a two-party negotiation. Only the seller and dealer are involved in the negotiations.

• Question 455:

  Which of the following results is most likely to occur when public media are used to resolve disputes between employees and management?

  A. The company's image may be improved.

  B. Public opinion may pressure the parties to resolve the dispute.

  C. Communication between employees and management is improved.

  D. The need for support from a union is increased.

  Correct Answer: B

  When public media are used as tools for resolving employee-management disputes, communication is hindered because the issues are addressed to the public rather than discussed with the other party. Moreover, compromise becomes difficult because the stated conclusions are solidified by public opinion. However, the need for union support is reduced because public pressure may help to resolve the negotiations.

• Question 456:

  The behavioral science literature identifies diffusion as an effective approach to resolving conflict. An auditor effectively using diffusion in working with a confrontationalauditedwould:

  A. Set aside critical issues temporarily and try to reach agreement on less controversial issues first.

  B. Emphasize differences between the parties.

  C. Avoid the conflict situation.

  D. Identify the sources of conflict and address them directly.

  Correct Answer: A

  Diffusion temporarily leaves the conflict unresolved. Smoothing (downplaying differences and emphasizing common interests) and compromise (requiring each party to make concessions) are diffusion approaches to conflict management. The disadvantage is that the underlying problems remain unresolved while the less controversial issues are being addressed first.

• Question 457:

  To market effectively the internal auditing function to management, auditors must recognize that their roles may result in varying degrees of conflict. Conflict triggers must be understood and managed so that a dysfunctional situation does not develop. Select the answer that is not a conflict trigger.

  A. Communication breakdowns.

  B. Super ordinategoals.

  C. Personality clashes.

  D. Status differentials.

  Correct Answer: B

  Conflict trigger include ambiguous jurisdictions (unclear job boundaries); competition for scarce resources; status differentials; time pressures; personality clashes; unreasonable standards, rules, etc.; communication breakdowns; and unrealized expectations. However, an appeal to super ordinate goals is a conflict resolution technique, not a conflict trigger.

• Question 458:

  Which of the following would not be considered a conflict trigger?

  A. Ambiguous jurisdictions.

  B. Competition for scarce resources.

  C. Status differential.

  D. Super ordinategoals.

  Correct Answer: D

  An appeal to super ordinate goals is a means of resolving conflict.Super ordinategoals are overriding, common goals of the parties. The conflict can be resolved if the individuals involved understand that it is preventing them from achieving more important, mutually held goals.

• Question 459:

  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.

  Correct Answer: B

  Competition is a conflict-handling intention characterized by considerable assertiveness (the degree to

  which the party seeks to achieve his/her goals) and a low degree of cooperativeness (the degree to which

  the party attempts to satisfy the concerns of others).

  Encouraging competition stimulates conflict.

• Question 460:

  Many people think that conflict is inherently detrimental to an organization. However, studies and actual case experience demonstrate that some conflict is desirable if an organization is to thrive. Identify the technique that management could use to stimulate conflict.

  A. Authoritative command.

  B. Restructuring the organization.

  C. Expansion of resources.

  D. Creation of super ordinate goals.

  Correct Answer: B

  The interactionist view is that conflict may be constructive as well as destructive because it encourages self-criticism, creativity, and necessary change. Accordingly, managers may decide to stimulate controlled conflict. Techniques for this purpose may include ambiguous or threatening communications; hiring outsiders with different values, managerial styles, attitudes, and backgrounds; designating an individual to argue against the majority opinions of the group:and restructuring the organization to disrupt the status quo.