IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 771:

  A manager in a government agency supervises a section of clerical employees who review license applications for approval or denial. The clerical jobs are well defined procedurally and are covered by government regulations. In this case, what is the best leadership style for the manager?

  A. Directive.

  B. Supportive.

  C. Participative.

  D. Achievement-oriented.

  Correct Answer: B

  A supportive style is best when tasks are highly structured and the authority relationships are clear and bureaucratic. This approach depends on people who want to work, grow, and achieve. The supportive style may be best when tasks are unsatisfying.

• Question 772:

  A production team has been together for several years and has worked well together. However, severe arguments have recently occurred between two members of the group,and other members have begun to take sides. This problem has had a negative effect on production performance. The best leadership style for the manager in this situation is:

  A. Directive.

  B. Supportive.

  C. Participative.

  D. Achievement-oriented.

  Correct Answer: A

• Question 773:

  The workers in a factory have been told that the current machines are obsolete and will be replaced by new, computer- assisted machines. The workers must be retrained and are eager to learn everything about the new machines. The manager was recently hired from a company where the new machines were extensively used and is very familiar with them. In this case, what is the best leadership style for the manager?

  A. Directive.

  B. Supportive.

  C. Participative.

  D. Achievement-oriented.

  Correct Answer: A

• Question 774:

  The manager of a team of actuaries has been asked to develop the basic pricing structure for a new health insurance product. The team has successfully designed other pricing structures in recent years. The manager was assigned to the team 6 months ago that is the best leadership style for the manager of this team?

  A. Directive.

  B. Supportive.

  C. Participative.

  D. Achievement-oriented.

  Correct Answer: C

• Question 775:

  A manager implementing the directive leader approach should:

  A. Closely supervise each employee.

  B. Display confidence in each employee's ability.

  C. Work with the employee when developing goals.

  D. Clearly signal that the employee is expected to be successful.

  Correct Answer: A

• Question 776:

  An Internal Audit Department adopts a training posture that provides training to management on fraud awareness, including an overview of the corporate fraud policy and hotline. This training posture best demonstrates that the Internal Audit Department is taking which of the four leadership roles?

  A. Path finding, which focuses on a purpose and how to achieve it.

  B. Aligning, which focuses on how to align systems and processes to achieve a purpose.

  C. Empowering, which focuses on how to cultivate people to have the right authority, responsibility, and commitment to best help achieve a purpose.

  D. Modeling, which focuses on how to demonstrate the values to convince others to follow an example and take responsibility for achieving a purpose.

  Correct Answer: C

  Empowering is the best answer because fraud awareness training as noted in the question provides individuals with the information and guidance they need to take responsibility and commit to tasks required to achieve a purpose. Fraud awareness training makes sure they know policy and how to report suspected issues.

• Question 777:

  Which of the following constitute initiating structure behavior?

  I. Defining duties

  II. Planning and organizing work

  III.

  Helping with work-related problems

  A.

  I and II only.

  B.

  I and Ill only.

  C.

  II and Ill only.

  D.

  I, II, and Ill.

  Correct Answer: A

  Initiating structure behavior is directed towards accomplishing tasks. Structure includes defining duties, establishing procedures, planning and organizing work. Consideration, on the other hand, is the establishment of a personal relationship between the leader and the subordinate. High consideration by the leader includes warmth towards the employee as a person, psychological support for the employee, and helpfulness with work-related problems.

• Question 778:

  A leader who explains decisions and provides opportunity for clarification is described as having which leadership style?

  A. Selling.

  B. Telling.

  C. Participating.

  D. Delegating.

  Correct Answer: A

  According to Hersey and Blanchard, a selling style of leadership provides a high degree of task orientation and a high degree of relationship orientation. This type of leader explains decisions and provides opportunities for clarification. Thus, upward and downward, two- way communication is active. This approach is more democratic than authoritarian.

• Question 779:

  Which of the following statements is true regarding leadership styles?

  A. The manager dictates all decisions to the employees, so communication is downward and tasks are clearly defined in authoritarian leadership.

  B. Employees in a group are given the authority and responsibility to make individual decisions in democratic leadership.

  C. The leader delegates substantial authority and employees participate in defining and assigning tasks in laissez-faire leadership.

  D. None of the answers are correct.

  Correct Answer: A

  When a manager uses an authoritarian leadership style, he or she dictates all decisions to the employees, so communication is downward. Moreover, tasks are clearly defined. This is considered the classical approach to leadership. Employees are not allowed to give input.

• Question 780:

  If a supervisor uses a supportive management approach, evidenced by positive feelings and concern for subordinates, a problem might result because:

  A. An approach based on pure power makes it difficult to motivate staff.

  B. This approach depends on material rewards for the worker.

  C. This approach depends on people who want to work, grow, and achieve.

  D. The manager must believe in the teamwork approach.

  Correct Answer: C

  Supportive management techniques orient workers toward performance rather than obedience or happiness. The leader should have positive feelings for his or her employees and should attempt to encourage participation and involvement. This approach is effective when used with employees who are motivated to work, improve themselves and their abilities, and accomplish goals.