IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 111:

  Studies of managerial communications have indicated that:

  A. Most managers are excellent communicators.

  B. Managers spend most of their time communicating.

  C. Written communication takes more of a manager's time than oral communication.

  D. Most effective communicators will be good managers.

  Correct Answer: B

  Because communication is the process of conveying meaning or understanding from one person to another, managers must spend most of their time communicating with subordinates, peers, and superiors. They communicate organizational goals and plans downward, lower- evel results and problems upward, and coordinating information horizontally among peers or across organizational channels).

• Question 112:

  The faulty email led to a communications error by the executive committee of the multinational firm. The error was in:

  A. Decoding of the message.

  B. Choice of transmission medium.

  C. Understanding of the message.

  D. Response to the message.

  Correct Answer: C

  Because of faulty encoding, the message was open to two different interpretations. The committee chose the wrong one.

• Question 113:

  The email received by the executive committee was faulty. In terms of the links in the communications process, the error occurred because of:

  A. Noise in the communication chain.

  B. The sender's perception.

  C. Message encoding.

  D. The choice of transmission medium.

  Correct Answer: C

  Encoding is the sender's packaging of an idea for better understanding. It entails translating the message into symbols that can be transmitted through the chosen medium of communication and then decoded by the recipient. In this example, the sender's wording of the message was misleading. A multinational firm was attempting to buy a controlling interest in a medium size US $10 million annual sales) foreign metal-working firm. The multinational firm's negotiator in the foreign country sent the following email:The foreign firm won't deal unless 51% ownership." The executive committee of the multinational firm, not wanting a minority interest, then canceled the deal. Upon returning to the multinational firm, the negotiator pointed out that the foreign firm wanted to sell no more than 51% ownership i n order to retain at least 49%. Thus, the deal could have been made.

• Question 114:

  A purchasing agent placed a rush telephone order with a supplier. The clerk in the supplier's office repeated the order specifications back to the purchasing agent. No written confirmations were exchanged. The shipment arrived late and was of the wrong quantity.

  However, the purchasing agent was unable to prove that the shipment was unsatisfactory.What link of the communication chain has failed in this scenario?

  A. Encoding.

  B. Decoding.

  C. Medium.

  D. Feedback.

  Correct Answer: C

  In the communication process, the medium is the channel through which the communication flows. The failure in this case was caused by the choice of a medium that did not create a permanent record of the facts of the communication. A multinational firm was attempting to buy a controlling interest in a medium size US $10 million annual sales) foreign metal-working firm. The multinational firm's negotiator in the foreign country sent the following email:The foreign firm won't deal unless 51% ownership." The executive committee of the multinational firm, not wanting a minority interest, then canceled the deal. Upon returning to the multinational firm, the negotiator pointed out that the foreign firm wanted to sell no more than 51% ownership in order to retain at least 49%. Thus, the deal could have been made.

• Question 115:

  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 116:

  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 117:

  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 118:

  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 non-specialist. 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 119:

  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 120:

  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.