IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 511:

  In a report, an internal auditor stated that communication in theauditedarea was poor with employees deciding in advance which information should be given to management so as topresent themselves in the best possible light. This is an example of:

  A. Filtering.

  B. Selective perception.

  C. Emotion.

  D. Language.

  Correct Answer: A

  Filtering of a message is the sender's manipulation of information so that it will be viewed more favorably by the receiver. Filtering is a typical problem in upward communication, e.g., from employee to manager.

• Question 512:

  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.

  Correct Answer: B

  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 513:

  Noise may disrupt communication during transmission. All of the following are examples of noise except:

  A. Selective perception.

  B. Static on a telephone line.

  C. A letter lost because it was interspersed with junk mail.

  D. A participant in a conversation being called away for a meeting.

  Correct Answer: A

  Noise in a communication channel is an outside disruption that impedes the flow of a message. It can vary from real noise, such as loud machines running and static on a phone line, to disruptions such as phone calls during a face-to-face conversation. Selective perception on the part of either the sender or the receiver of a message is not noise because it is not an outside disruption.

• Question 514:

  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."

  Correct Answer: B

  The use of jargon leads to communication problems when a specialist tries to send a message to a nonspecialist. 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 515:

  Which of the following does not describe perception?

  A. Selectivity.

  B. Organization.

  C. Objective.

  D. Interpretation.

  Correct Answer: C

  Perception is the process through which someone gives meaning to the surrounding environment. Perception consists of three subprocesses:selectivity, organization, and interpretation. Objectives focus upon the purpose of communication rather than the receipt and interpretation perception).

• Question 516:

  Which one of the following is not an example of formal communication within an organization?

  A. The grapevine.

  B. Variance analysis.

  C. The performance evaluation system.

  D. A budget.

  Correct Answer: A

  Formal communication is conducted through the officially established structure of the organization. Informal communication operates outside officially established structural channels. The grapevine is an example. Although the grapevine is usually accurate, it can also carry gossip and rumor.

• Question 517:

  Nonverbal communication is a powerful but little-understood form of communication in organizations. All of the following represent forms of nonverbal communication except:

  A. The tone of voice a person selects.

  B. The positioning of furniture in a person's office.

  C. Prolonged eye contact.

  D. A facsimile message from a business associate.

  Correct Answer: D

  Nonverbal communication consists of the nuances that accompany a verbal communication. For instance, the tone of a speaker's voice may communicate something totally different from the words being spoken. Similarly, body language facial expressions, gestures,posture, and appearance) is a nonverbal communicator. Even the positioning or nature of furniture in an office may communicate something to a listener. A fax message, however is a verbal communication to the extent that it contains words.

• Question 518:

  Communication is most likely to be effective when:

  A. The sender carefully considers the receiver's needs.

  B. Sender and receiver concentrate only on verbal messages.

  C. It changes the receiver's attitude.

  D. The receiver monitors the sender's behavior.

  Correct Answer: A

  The needs, abilities, and skills of the receiver must be taken into account by the sender. The sender must fit the message to what the receiver can effectively receive or the message will be useless.

• Question 519:

  Which of the following devices translates the intended message into the sender's chosen communication form?

  A. Transmitter.

  B. Encoder.

  C. Channels.

  D. Decoder.

  Correct Answer: B

  The encoder is a device used to translate the sender's message into an appropriate form of

  communication. This communication form is selected by the sender of the message. The device may be

  verbal, written, or nonverbal, such as facial expressions or voice inflections.

  Computers are often used as encoders.

• Question 520:

  The marketing manager of a corporation wrote an interdepartmental memorandum to the budget manager concerning corrections to the sales forecast for the coming year. What is this an example of?

  A. Downward communication.

  B. Upward communication.

  C. Informal communication.

  D. Horizontal communication.

  Correct Answer: D

  An interdepartmental memorandum, as described, is a horizontal communication in that no superior-subordinate relationship is involved.