IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 651:

  The key ingredient to group effectiveness is:

  A. Challenge.

  B. Trust.

  C. Norms.

  D. Roles.

  Correct Answer: B

  Groups in the acceptance stage of group development tend to be effective and efficient. This stage is characterized by personal and mutual understanding, tolerance of individual differences, constructive conflict about substantive matters, realistic expectations about group performance, and acceptance of the authority structure. The resulting trust engenders cohesiveness and a free exchange of information between group members.

• Question 652:

  Which of the following characteristics is common with a mature group?

  A. Harmony is emphasized at the expense of addressing the problems.

  B. No attempt to force unanimity.

  C. Members begin to identify with the group.

  D. Redistributions of power and authority may occur.

  Correct Answer: B

  A mature group is in the end stage of group development and tends to be more effective and productive compared to groups in earlier stages. A mature group engages in rational discussion of decisions with tolerance of dissent and no attempt to force unanimity.

• Question 653:

  A mature group lacks which of the following characteristics?

  A. Acceptance of individuals' differences.

  B. Members' awareness of individual roles in group processes.

  C. Attempts to compel unanimity.

  D. Acceptance of group authority and interpersonal relationships.

  Correct Answer: C

  A mature group has rational discussion of decisions with tolerance of dissent and no attempt to force unanimity. Groups that are in their early stages attempt to force unanimity.

• Question 654:

  An organization has recently introduced total quality management TOM). Its senior management wants to determine an innovative approach to foster total participation throughout the organization. Management should:

  A. Seek isolation from all distractions in order to think the problem through.

  B. Bring the employees together for a brainstorming session.

  C. Rely on themselves to develop a new approach.

  D. Use a disciplined problem-solving approach.

  Correct Answer: B

  Certain group decision-making processes may be more creative than individual decisions. One creative approach is brainstorming, which breaks down broadly based problems into their essentials. It is an unstructured approach that relies on the spontaneous contribution of ideas from all members of a group.

• Question 655:

  Which of the following characteristics is a strength of group decision making?

  A. Group decision making is quicker than individual decision making.

  B. More information can be processed by the group than by an individual.

  C. It is less costly to have decisions made by groups than by an individual.

  D. Group decision making leads to the selection of the most appropriate alternative.

  Correct Answer: B

  The advantages of group decision making are that the group will have broader experience, greater expertise, a wider range of perspectives, and a greater capacity for absorbing facts than an individual. The exchange of viewpoints within the group may provide more illumination of the problem than could be achieved by one person.

• Question 656:

  An organization that makes precision castings for the automotive and aerospace industries plans to build a manufacturing plant. The president has formed a small committee of senior managers to evaluate potential plant sites and make the final choice. Which of the following is correct about the president's approach to making this decision?

  A. A site that receives the committee's unanimous approval can be presumed to be the best choice available.

  B. The committee's decision will receive greater opposition than a decision made by one executive.

  C. Committee members will tend to encourage creative thinking and innovative viewpoints among themselves.

  D. The fact that the decision was made by a committee obscures the role of personal accountability.

  Correct Answer: D

  When a decision is made by a group rather than an individual, accountability is spread over the members of the group rather than concentrated on an individual. Opportunities for groupthink and buck-passing are abundant because no one person answers for the consequences.

• Question 657:

  The chief audit executive is attempting to standardize the engagement procedures used throughout the organization. Many of the internal auditors are employed at distant locations. The CAE wants to select a process that will encourage input from a cross section of internal auditors, facilitate differing perspectives, and encourage acceptance of changes that might result from the standardization. The decision-making process that will most effectively achieve the CAE's goals is

  A. A decision-making model.

  B. Group-aided decision making.

  C. The contingency approach.

  D. Programmed decision making.

  Correct Answer: B

  The advantages of group decision making are that the group will have broader experience, greater expertise, a wider range of perspectives, and a greater capacity for absorbing facts than an individual. The exchange of viewpoints within the group may provide more illumination of the problem than could be achieved by one person. Group- aided decision making facilitates analyzing problems and estimating needed actions. It encourages participation and acceptance of decisions.

• Question 658:

  In deciding whether to have a work group make a decision or to make the decision personally, a manager should consider

  A. When the decision is needed.

  B. How important it is for the work group to accept the decision.

  C. Whether there are strong individuals in the work group who could dominate the decisionmaking process.

  D. All of the answers are correct.

  Correct Answer: D

  If the decision is needed immediately, group decision making may not be indicated because assembling the group and the often inefficient interactions of its members are time consuming. Another disadvantage of group decision making is the possibility a few people will dominate the deliberations. If they lack ability, the group may not be effective. An advantage of the decision-making process is that it fosters acceptance by the members of the group. Participation by the individuals who will be required to implement the solution adopted increases the likelihood of its success.

• Question 659:

  An engagement to review an organization's budget process has revealed that department heads frequently circumvent budget controls by actions such as padding their budgets and concealing opportunities to cut costs. One of the engagement recommendations involves forming a group composed of department heads to find a solution for this problem. Which one of the following methods is likely to generate a high level of commitment to the solution among members of the group?

  A. The brainstorming technique in which group members orally identify as many alternatives as possible without criticism from other members.

  B. A mandate from top management.

  C. The Delphi technique in which a series of questionnaires is used to arrive at a consensus.

  D. An open discussion of the problem and potential solutions until a consensus is reached.

  Correct Answer: D

  Interacting groups, that is, traditional groups in which individuals meet face-to-face and interact in customary ways, potentially foster the greatest commitment to the solution reached. When individuals who must implement the solution participate in the decision through open discussion and arrive at a consensus, they are usually inclined to accept the decision.

• Question 660:

  A project coordinator for a large capital project used a brainstorming session of the senior project managers to decide how to get the project back on schedule. A disadvantage of this approach is that:

  A. Responsibility for the decision will be unclear.

  B. Only situational factors will be addressed.

  C. Creativity will be decreased.

  D. Diversity of views will be decreased.

  Correct Answer: A

  Brainstorming is an aid to creativity in group decision making. This technique requires a group meeting, possibly online, to develop solutions in a criticism-free context. All ideas are recorded and are later either discarded or more fully developed. Thus, a nonjudgmental environment is essential. Moreover, to create such an environment or to avoid having personality conflicts interfere with the process, a means of conferring anonymity on the participants is sometimes used. However, brainstorming suffers from a structural weakness of group decision making, dispersal of accountability.