IIA IIA Certifications IIA-CIA-PART4 Questions & Answers

• Question 61:

  To market effectively the internal auditing function to management, auditors must recognize that their roles may result in varying degrees of conflict. Conflict triggers must be understood and managed so that a dysfunctional situation does not develop. Select the answer that is not a conflict trigger.

  A. Communication breakdowns.

  B. Super ordinategoals.

  C. Personality clashes.

  D. Status differentials.

  Correct Answer: B

  Conflict trigger include ambiguous jurisdictions (unclear job boundaries); competition for scarce resources; status differentials; time pressures; personality clashes; unreasonable standards, rules, etc.; communication breakdowns; and unrealized expectations. However, an appeal to super ordinate goals is a conflict resolution technique, not a conflict trigger.

• Question 62:

  Which of the following would not be considered a conflict trigger?

  A. Ambiguous jurisdictions.

  B. Competition for scarce resources.

  C. Status differential.

  D. Super ordinategoals.

  Correct Answer: D

  An appeal to super ordinate goals is a means of resolving conflict.Super ordinategoals are overriding, common goals of the parties. The conflict can be resolved if the individuals involved understand that it is preventing them from achieving more important, mutually held goals.

• Question 63:

  Which one of the following techniques is not generally recognized as an effective conflict resolution technique for management to use in a dispute between employees?

  A. Accommodation - management encourages a high degree of cooperation and a low degree of assertiveness.

  B. Competition - management encourages the parties to seek their own interests, regardless of the effect on each other.

  C. Reorganization - management transfers one of the disputants to another department.

  D. Compromise - management persuades each party to make concessions.

  Correct Answer: B

  Competition is a conflict-handling intention characterized by considerable assertiveness (the degree to which the party seeks to achieve his/her goals) and a low degree of cooperativeness (the degree to which the party attempts to satisfy the

  concerns of others).

  Encouraging competition stimulates conflict.

• Question 64:

  Many people think that conflict is inherently detrimental to an organization. However, studies and actual case experience demonstrate that some conflict is desirable if an organization is to thrive. Identify the technique that management could use to stimulate conflict.

  A. Authoritative command.

  B. Restructuring the organization.

  C. Expansion of resources.

  D. Creation of super ordinate goals.

  Correct Answer: B

  The interactionist view is that conflict may be constructive as well as destructive because it encourages self-criticism, creativity, and necessary change. Accordingly, managers may decide to stimulate controlled conflict. Techniques for this purpose may include ambiguous or threatening communications; hiring outsiders with different values, managerial styles, attitudes, and backgrounds; designating an individual to argue against the majority opinions of the group:and restructuring the organization to disrupt the status quo.

• Question 65:

  In a situation involving a disagreement between two parties, when one party's interests are more important than the other's (for example, a customer believes one product is most suitable whilethe seller disagrees, yet the seller's primary goal is to keep the customer satisfied), the best conflict-resolution strategy is:

  A. Accommodating.

  B. Compromising.

  C. Competing.

  D. Challenging.

  Correct Answer: A

  Accommodating is a conflict handling intention. The dimensions of conflict handling intentions are assertiveness and cooperation. An intention is what mediates between one's actual behavior and one's emotions and perceptions. Accommodating entails placing another person's interests above one's own. It represents the minimum of assertiveness and the maximum of cooperation. For example, the seller should accommodate the customer by providing the product the customer wants.

• Question 66:

  While conducting field work, a strong conflict arises between two of your subordinates regarding possible scope expansion. You draw their attention to their shared views, downplaying the issues of contention. This technique for resolving conflict is called:

  A. Super ordinate goals.

  B. Smoothing.

  C. Problem solving.

  D. Compromise.

  Correct Answer: B

  Smoothing is a conflict resolution technique in which differences are deemphasized and common interests of the parties are emphasized. It has the disadvantage of not solving the underlying problems that created the conflict.

• Question 67:

  Two managers have been informed that their units will be relocated to a new site. The units are to share space at the new office location. The managers have been arguing for several weeks over the allocation of space and the location of offices. This disagreement is threatening the relocation schedule and disrupting other projects. The managers' supervisor has now becomeinvolved in the conflict and must try to minimize the potential for hurt feelings while resolving the problem quickly. Identify the supervisor's best approach for this situation.

  A. Sit down with the managers and determine a solution.

  B. Design a floor plan and tell the managers who occupies what space.

  C. Remind the managers that the company needs their cooperation in this effort so that costs can be reduced

  D. Tell the managers not to worry and that problems like this have a way of working themselves out.

  Correct Answer: A

  Problem solving is a means of confronting the conflict and removing its causes. The emphasis is on facts and solutions, not personalities and assignment of blame. The disadvantage is that problem solving takes time. In this situation, a three-party negotiation stressing a win-win attitude is appropriate. Negotiation should be feasible because the parties have overlapping interests.

• Question 68:

  Two managers have been arguing about the distribution of money for capital investment projects affecting their respective production units. All of the projects are worthwhile and significantly exceed the organization's required rate of return. The approach that would create a win-win solution for the managers under these circumstances would be to:

  A. Smooth the differences of the two managers by emphasizing their common interests.

  B. Alter the attitudes and behaviors of the managers so that agreement can be reached.

  C. Force the managers to compromise by asking each of them to give up something.

  D. Expand the resources available so that both manager's projects can be funded.

  Correct Answer: D

  Expanding the pool of scarce resources, in this case, the money available for capital projects, permits both managers to achieve his/her objectives without having to give up anything of value. Thus, each side wins.

• Question 69:

  As a conflict resolution strategy, optimizing (or a win-win strategy) is most appropriate when:

  A. The benefits being contested cannot be changed.

  B. The relationship between the parties is likely to continue.

  C. People are deeply committed to established habits and patterns.

  D. Time is scarce and the manager's patience is wearing thin.

  Correct Answer: B

  Optimizing or problem solving entails addressing the source of conflict and finding alternative strategies that benefit all parties. It promotes cooperative, positive attitudes that transfer to other organizational behaviors. Hence, optimizing may be worth the expenditure of more resources than other strategies because it improves the future relationship of the parties.

• Question 70:

  Keeping a conflict from surfacing at all is an example of following which conflict management strategy?

  A. Avoidance.

  B. Defusion.

  C. Containment.

  D. Confrontation

  Correct Answer: A

  An avoidance strategy aims to resolve the conflict by ignoring it or imposing a solution. It is appropriate if the conflict is trivial or if quick action is needed to prevent the conflict from arising.