IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 661:

  Numerous factors enhance or detract from a group's attractiveness and cohesiveness. Select the factor that enhances cohesiveness.

  A. Favorable view from the outside-looking-in.

  B. Wide variety of members.

  C. A common threat in the environment.

  D. Moderately large size.

  Correct Answer: C

  Commitment to a group depends on its attractiveness and cohesiveness. The latter quality is the tendency of members to adhere to the group and resist outside influences. Factors that enhance group attractiveness and cohesiveness are prestige, status, a cooperative relationship, a high degree of interaction, small size, the similarity of members, a superior public image, and a common threat in the environment.

• Question 662:

  Which of the following would increase understanding of a complex and ambiguous situation confronted by an organization?

  I. Brainstorming.

  II. Polling.

  III.

  Lateral thinking.

  A.

  I only.

  B.

  I and Ill only.

  C.

  II and Ill only.

  D.

  I, II, and Ill.

  Correct Answer: B

  Brainstorming is a method of group decision making thatnonjudgmentalrecords all ideas offered. By encouraging groups to identify novel or unusual contributions, brainstorming helps make all of the elements of a problem and its resolution visible. Lateral thinking explores different ways of viewing an issue. Taking alternative perspectives increases the likelihood of finding better solutions. However, by identifying views without further analysis, polling does not increase understanding of a complex situation.

• Question 663:

  A new production team has been formed by taking experienced high achievers from existing teams within the factory. The members of the new team have not been required to learn any new skills, and the machines used are identical to those used in their former teams. The team's production supervisor is a longtime employee of the organization but has not previously worked with any members of the new team. Despite the abilities and previous individual achievements of the individual team members, management is surprised by the mediocre performance of the new team. The best approach for the production supervisor to improve performance would be to:

  A. Increase pressure on the team through higher goals and reprimands.

  B. Replace the individuals on the team.

  C. Provide opportunities for the team members to socialize with each other.

  D. Do nothing now because it is too soon to draw any conclusions.

  Correct Answer: C

  As the team members work and socialize, cohesiveness will be enhanced because of the opportunity to discover commonalities and share experiences. However, performance may or may not improve as cohesiveness increases. Improvement is also contingent on the group's performance norms. A cohesive group enforces norms. Thus, if norms are high, greater cohesiveness should result in better performance.

• Question 664:

  In an internal audit department, group decision making would be most appropriate for determining whether to:

  A. Report a significant audit finding that is critical of management.

  B. Expand an audit program because of uncertainty and risk regarding the operations of the audited entity.

  C. Expand audit procedures when initial sample results indicate a strong possibility of fraud.

  D. Review a critical audit finding with the client before preparation of the engagement final communication.

  Correct Answer: B

  Whether to expand an audit program because of uncertainty and risk regarding the operations of the audited entity is a matter of professional judgment. In discretionary matters of this kind, the advantages of group decision making become evident. The group has a greater base of knowledge than an individual and provides multiple perspectives. Furthermore, the extended discussions among group members clarify the issues and aid in understanding the reasons fordifferent actions. Also, the participants are likely to accept, or take ownership of, the final decision. In addition, the process provides training for the group's less experienced members.

• Question 665:

  Groups have often evolved by self-set standards of performance and behavior, usually based on the personal and social backgrounds of the individuals on the job. This establishment of a group culture is referred to as developing:

  A. Role models.

  B. Cohesiveness.

  C. Conformity.

  D. Norms.

  Correct Answer: D

  Norms are the standards of behavior adopted by a group when it is in its early stages. The norms of the group are often a composite of the personal and social backgrounds of the individuals who comprise the group.

• Question 666:

  A lack of cohesiveness and attractiveness in a group may lead to

  A. A lack of commitment by the members.

  B. Dissension in the formal organization.

  C. Cooperation among group members.

  D. Substantial group member interaction.

  Correct Answer: A

  Commitment to a group depends on the group's attractiveness and cohesiveness. A lack of commitment may lead to members joining other groups and bad experiences with the group.

• Question 667:

  Which of the following characteristics do both informal and formal groups share?

  A. Both groups are structured similarly.

  B. Commitment to both groups depends on the group's attractiveness and cohesiveness.

  C. Membership in both groups is usually the same.

  D. Both groups exist within the community to perform a productive activity.

  Correct Answer: B

  The commitment to a group depends on the group's attractiveness and cohesiveness. Employees are more likely to join a group that has a favorable view from the outside and whose group members adhere to the group and resist outside pressure.

• Question 668:

  Which of the following is true with regard to norms?

  A. Norms are similar from culture to culture.

  B. Norms reinforce the group's values and common identity.

  C. Norms cannot be enforced by ridicule or criticism.

  D. Norms are often written in an organization's policy manual.

  Correct Answer: B

  Norms often provide a common identity for a group. Members feel they are part of a cohesive group with members who also share the same values.

• Question 669:

  There has been an increased emphasis on group decision making in organizations. Which of the following statements has been found to hold true in studies of individual decision making as compared to group decision making? Individual decision making tends to:

  A. Be more conservative.

  B. Evaluate more complete information.

  C. Generate more alternatives.

  D. Increase the perceived legitimacy of the decision.

  Correct Answer: A

  Group decision making is often characterized by greater acceptance of risk because of the dispersal of accountability. Individual decision making tends to be more conservative because accountability can be specifically assigned.

• Question 670:

  Which of the following is not a characteristic of informal groups?

  A. Informal groups are developed to establish friendships.

  B. Informal groups tend to be small and very complex.

  C. Membership in informal groups lasts longer than membership in formal groups.

  D. Informal groups develop their own leaders.

  Correct Answer: C

  Membership in formal groups tends to last longer than membership in informal groups. Membership in both groups is usually different as well.