IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 371:

  Which of the following is false regarding transformational leadership?

  A. Transformational leadership emphasizes vision, development of the individual, empowerment of the worker, and the challenging of traditional assumptions.

  B. Transformational leaders use traditional thinking to monitor employees so that the employees adhere to standards.

  C. Transformational leaders have charisma and provide intellectual stimulation to the workers.

  D. Transformational leaders expect employees to achieve more than the employees thought was possible.

  Correct Answer: B

  Transformational leaders have charisma and provide intellectual stimulation to the workers. In addition, they will emphasize vision, focus on development of the individual, empowerment of the worker, and the challenging of traditional assumptions. A transactional leader, on the other hand, would monitor employees to ensure that they adhered to standards.

• Question 372:

  Using the leadership grid developed by Robert Blake and Jane Mouton where each axis has a scale of 1 to 9, a primary style of 9,9 would indicate:

  A. Little concern for production or people (impoverished management).

  B. Moderate concern for production and people to maintain status quo (middle-of-the-road management).

  C. Great concern for production and people, trust, teamwork, and commitment (team management).

  D. Primary concern for production, little concern for people (authority-compliance management).

  Correct Answer: C

  A primary style that rates 9,9 on a scale of 1 to 9 indicates that it is at a maximum on both axes. Thus, there is great concern for production and great concern for people. This leadership style would emphasize output, cost control, and profit in addition to friendship, aiding employees, and addressing employee issues.

• Question 373:

  Which of the following is a benefit of implementing the achievement-oriented leader approach rather than the directive leader approach?

  A. Employee development is enhanced.

  B. The structured environment allows employees to better achieve the organization's goals.

  C. Closer supervision is provided for employees who perform better in a structured work atmosphere.

  D. Employees have more opportunities to develop creativity and meet challenges.

  Correct Answer: D

  The benefits to the company of the achievement-oriented leader approach include greater employee confidence and commitment, more employee decision making, increased employee creativity, more challenging objectives, and reduced supervision for employees who work best independently.

• Question 374:

  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 375:

  Which of the following is true regarding Fiedler's studies of contingency theory?

  A. The three dimensions to contingency theory are position power, task structure, and relationship structure.

  B. The two types of leaders that emerged from Fiedler's studies include task-oriented style and leader-member style.

  C. Placement of leaders in the organization is not as important as the leaders' leadership skills.

  D. People become leaders not only because of personality attributes, but also because of various situational factors and the interaction between the leaders and the situation.

  Correct Answer: D

  According to Fred E. Fiedler's contingency theory, people become leaders not only because of personality attributes, but also because of various situational factors and the interaction between the leaders and the situation. Thus, the right person at the right time may rise to a position of leadership if his or her personality and the needs of the situation complement each other.

• Question 376:

  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 377:

  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 378:

  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 379:

  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 380:

  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.