IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 281:

  An audit manager allowed a work group to make a decision about whether to adopt a new work procedure. In allowing the group to make the decision, the manager should be aware that groups tend to make: A. Very conservative decisions and do not want to assume risk.

  B. Faster decisions than do individuals because groups have more expertise than does any one person.

  C. Decisions that are less accurate than those made by individuals.

  D. Riskier decisions than do individuals, and individual responsibility for the group's decision is lessened.

  Correct Answer: D

  Groupshift is the difference between the decisions that members of a group would make singly and the group's decision. Sometimes the group's decision is more conservative, butmore often it is riskier. What apparently occurs is that the group discussion accentuates the initial tendency of the group. The most likely reason for the more frequent shift toward the riskier course is diffusion of responsibility among members of the group. Thus, no one will be wholly to blame for failure.

• Question 282:

  Which of the following is not true with regard to informal groups?

  A. Members of the group are susceptible to group pressure.

  B. The groups develop primarily to satisfy esteem needs.

  C. Almost all employees and managers are members of an informal group.

  D. Informal groups tend to be small and have simple relationships.

  Correct Answer: D

  Informal groups tend to be small and are often very complex. They develop their own leaders and usually result from the frequent interaction among individuals in the course of their work.

• Question 283:

  Informal groups often have many favorable effects on the members. Which of the following is one of the favorable effects informal groups have on members but that may have an unfavorable effect on the organization?

  A. Informal groups aid in problem-solving situations.

  B. Informal groups improve coordination and reduce supervision required.

  C. Informal groups reduce tension and encourage production.

  D. Informal groups provide another channel of communication.

  Correct Answer: D

  The additional channel of communication is a benefit to the informal group but may cause problems for the organization depending upon what messages are being communicated. This grapevine may cause the spread of false rumors or information and could be detrimental to the organization.

• Question 284:

  Which of the following statements about group decision making is most likely false?

  A. There is a lack of responsibility for group decisions.

  B. Group decision making is almost always less efficient than individual decision making.

  C. The desire by individual members to be accepted by the group often restrains open disagreement.

  D. Group decision making tends to be less creative than individual decision making.

  Correct Answer: D

  Groups tend to be more creative than individuals because diversity of member views generally results in the consideration of more alternatives for solving a problem but the social pressure to conform also may inhibit creativity.

• Question 285:

  Which of the following is not an advantage of group effort compared with work performed by individuals?

  A. Groups provide support to members.

  B. Groups make decisions that are more easily accepted.

  C. Groups provide a clear link between effort and outcome.

  D. Groups control and discipline members.

  Correct Answer: C

  In a culture that strongly emphasizes individual identity and competition, the preference tends to be for a clear link between effort and outcome. However, groups tend to submerge individual identity and responsibility and therefore to blur the link between individual effort and its results.

• Question 286:

  Which of the following is not an advantage of group decision making as compared to individual decision making?

  A. Groups obtain an increased degree of acceptance of a solution so that it may be more easily implemented.

  B. Group decision making is consistent with democratic methods.

  C. Group members bring more complete information and knowledge into the decision process.

  D. Group members avoid expressing opinions that deviate from what appears to be the group consensus.

  Correct Answer: D

  The groupthink phenomenon is undesirable. Groupthink occurs when group members accept what appears to be the group consensus rather than giving their honest input. The result maybe decisions with which some members of the group are not happy.

• Question 287:

  Which one of the following is generally not beneficial to group decision making in an organization?

  A. More information.

  B. Acceptance.

  C. More knowledge.

  D. Dominant members.

  Correct Answer: D

  Group decision making, such as by committee, works better when the committee is small and the members accept each other as contributing parts of the group. A dominant member is not desirable. The chair should act as a moderator and not be considered threatening or overbearing by the other members.

• Question 288:

  Which of the following can be a limiting factor associated with group decision making?

  A. Groups generally do not analyze problems in enough depth.

  B. It is very difficult to get individuals to accept decisions made by groups.

  C. Groups have a difficult time identifying the important components of decision making.

  D. Accountability is dispersed when groups make decisions.

  Correct Answer: D

  The difficulty associated with group-aided decision making is accountability for the decision. If a decision is made by a group, no one person is responsible. The best method is for the group to recommend a decision but for a manager to assume responsibility for making the final decision.

• Question 289:

  The most effective way fora supervisor to delegate a task to an employee is to:

  A. Define the desired outcome and the approach precisely and in writing.

  B. Define the desired outcome precisely, discuss possible approaches with the employee, and reach agreement on the approach to be taken.

  C. Let the employee try to perform the task fora defined period of time and then meet to critique the approach, clarify the assignment as needed.

  D. Give the assignment in very general terms, have the employee develop the desired outcome and approach, and then review and critique the employee's decisions.

  Correct Answer: B

  The supervisor's expectations should be clear. The employee should also be involved in determining how to reach the desired outcome, thereby increasing both acceptance and understanding of the assignment.

• Question 290:

  The CEO of a rapidly growing high-technology firm has exercised centralized authority over all corporate functions. Because the company now operates in four geographically dispersed locations, the CEO is considering the advisability of decentralizing operational control over production and sales. Which of the following conditions probably will result from and be a valid reason for decentralizing?

  A. Greater local control over compliance with governmental regulations.

  B. More efficient use of headquarters staff officials and specialists.

  C. Less overall operating costs.

  D. Quicker and better operating decisions

  Correct Answer: D

  Decentralization results in greater speed in making operating decisions because they are made by lower-level managers instead of being referred to top management. The quality ofoperating decisions should also be enhanced, assuming proper training of managers, because those closest to the problems should be the most knowledgeable about them.