IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 531:

  A cost accounting manager's job involves coordinating and summarizing monthly production department variance reports that are prepared by various staff accountants. The cost accounting manager then provides the relevant variances to colleagues, the production departmental managers. The accounting reports communicated by the cost accounting manager are an example of:

  A. Downward communication.

  B. Hierarchical communication.

  C. Informal communication.

  D. Horizontal communication.

  Correct Answer: D

  Communication can be downward from superior to subordinate), upward from subordinate to superior), or horizontal from one peer to another). It may also be formal or informal. A variance report prepared in the accounting department and sent to production departments is a formal horizontal communication because it occurs among peers laterally through an officially established channel.

• Question 532:

  When evaluating communication, the accountant should be aware that nonverbal communication

  A. Is independent of a person's cultural background.

  B. Is often imprecise.

  C. Always conveys a more truthful response.

  D. Always conveys less information than verbal communication.

  Correct Answer: B

  Nonverbal communication body language) consists of facial expressions, vocal intonations, posture, gestures, and appearance, and physical distance. Thus, by its nature, nonverbal communication is much less precise than verbal communication.

• Question 533:

  A company is rumored to be considering downsizing. Because a manager stops the use of all temporary employees, the staff concludes that some jobs will be lost. Which of the following is true about the manager's communication about job losses?

  A. The staff decoded the formal communication sent by the manager correctly.

  B. The manager properly encoded the idea in a message.

  C. The lack of a formal message had a negative impact on staff.

  D. The channel through which the message was sent was appropriate.

  Correct Answer: C

  Management's lack of formal communication regarding possible downsizing caused the employees to draw their own negative conclusions based on a manager's actions. Management should formally communicate the reasons for eliminating the use of temporary employees or refute the rumor about downsizing.

• Question 534:

  Which of the following is the best indicator of the effectiveness of a communication on a receiver?

  A. Understanding of message received.

  B. Clarity of message.

  C. Change in receiver's attitude.

  D. Change in receiver's behavior.

  Correct Answer: D

  The best indicator of the effectiveness of a communication on the receiver is the change in the receiver's behavior in the direction requested or required by the communication. The sender has the responsibility to solicit feedback or observe results) to determine the communication's effectiveness.

• Question 535:

  All of the following statements about communication are true except:

  A. Written communication inhibits feedback.

  B. Managers spend more of their workday involved in oral communication than written communication.

  C. Written communication provides a permanent record.

  D. Written communication is usually better when the message is non-routine and personal.

  Correct Answer: D

  Written communication is usually better when the message is routine and impersonal. A nonroutine message can be better communicated orally. Written communication also offers the advantage of providing a permanent record of the message, but it inhibits immediate feedback because the two parties are not in direct contact. Breakthroughs in electronic technology, such as computers that can recognize the human voice, may in the future blur the distinction between oral and written communication.

• Question 536:

  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.

  Correct Answer: D

  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 537:

  The biggest advantage of oral communication overwritten communication is that oral communication

  A. Tends to be more accurate.

  B. Promotes feedback.

  C. Is less time-consuming.

  D. Does not provide a permanent record.

  Correct Answer: B

  Oral communication promotes immediate feedback so that the sender knows that the message has been clearly received by the receiver.

• Question 538:

  Which of the following is least appropriate with regard to management's approach to informal group or grapevine communication? Management should:

  A. Use informal group information to supplement communication channels of the formal organization.

  B. Try to suppress informal group information as a possible source of conflicting information.

  C. Take advantage of informal group information as a device to correct misinformation.

  D. Make use of informal group information as a means of transmitting information not appropriate for formal communication channels.

  Correct Answer: B

  Suppressing grapevine networks is difficult, if not impossible. Recognizing that the grapevine exists and can be used effectively for several kinds of messages makes better managerial sense.

• Question 539:

  Which of the following statements is false according to communications theory?

  A. The process has three elements:sender, medium, receiver.

  B. Two-directional communication is usually most effective.

  C. Communication is the message actually received, not the message that is transmitted.

  D. Informal communications are used by effective managers.

  Correct Answer: A

  The communication process has five elements:the sender, the symbols in which the message is encoded, the medium through which the message is sent, the receiver, and feedback.

• Question 540:

  Which of the following terms does not apply to noise in communication?

  A. Encoding.

  B. Sending.

  C. Interpretation.

  D. Decoding.

  Correct Answer: C

  Interpretation is a subprocess of perception. Noise is a disruption that impedes the communication process.