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IIA-CIA-PART4 Online Practice Questions and Answers

Questions 4

The punishing of employees is made less effective by

A. Stating the offending behavior specifically.

B. Postponing the start of disciplinary procedures.

C. Permitting employees to challenge individual culpability.

D. Focusing the discussion on the offending behavior instead of the offender.

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Questions 5

Which of the following is generally true regarding a manager's span of control?

A. Narrow spans of control are typically found in flat organizations, those with few hierarchical levels.

B. An organization with narrow spans of control needs more managers than those with wide spans.

C. Wider spans of control mean higher administrative expense and less self-management.

D. Wider spans of control help ensure good internal controls and policy compliance throughout an organization.

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Questions 6

Which of the following would increase understanding of a complex and ambiguous situation confronted by an organization?

I. Brainstorming.

II. Polling.

III.

Lateral thinking.

A.

I only.

B.

I and Ill only.

C.

II and Ill only.

D.

I, II, and Ill.

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Questions 7

Which of the following is false with regard to quality circles and self-managed teams?

A. Managerial acceptance by tradition-oriented managers.

B. Self-managed teams are assigned by management, and quality circle teams are voluntary.

C. Self-managed teams and quality circles often have better cohesion among members.

D. Self-managed teams and quality circles are often able to help the organization operate more efficiently and effectively.

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Questions 8

A team is a group whose members work together to achieve a specific common goal. Which of the following is true with respect to teams?

A. All groups are teams, but not all teams are groups.

B. Teams improve organizational performance because teams are easy to form.

C. A team is similar to a group because team leadership often rotates and members are accountable to each other.

D. Smaller teams are recommended.

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Questions 9

X and Y are substitute products. If the price of product Y increases, the immediate impact on product Xis that its:

A. Price will increase.

B. Quantity demanded will increase.

C. Quantity supplied will increase.

D. Price, quantity demanded, and supplies will increase.

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Questions 10

Which of the following is an example of upward communication?

A. Management's notices on bulletin boards.

B. Grievance actions.

C. Informational inserts in pay envelopes.

D. Personnel policy manuals.

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Questions 11

The marketing manager of a corporation wrote an interdepartmental memorandum to the budget manager concerning corrections to the sales forecast for the coming year. What is this an example of?

A. Downward communication.

B. Upward communication.

C. Informal communication.

D. Horizontal communication.

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Questions 12

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.

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Questions 13

What link in the communications chain is defective?

A. The meaning of the message would be unclear to the buyer.

B. The supervisor chose the wrong channel for the communication.

C. The supervisor should not be the source of this type of communication.

D. The supervisor did not account for the noise in the communication chain.

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Exam Code: IIA-CIA-PART4
Exam Name: Certified Internal Auditor - Part 4, Business Management Skills
Last Update: May 26, 2026
Questions: 535
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