CIA真题
CIA英文试题
1. Client-server architecture may potentially involve a variety of hardware, systems software, and application software from many vendors. The best way to protect a client-server system from unauthorized access is through
A A combination of application and general access control techniques
B Use of a commercially available authentication system
C Encryption of all network traffic
D Thorough testing and evaluation of remote procedure calls.
A correct Security is more difficult to achieve in a client-server system than in a mainframe environment. The system has numerous access points, and users have many chances to alter data. Thus, application controls must be combined with general access controls to protect the system.
B incorrect Authentication systems are only a part of the solution.
C incorrect Encryption affects only general access control techniques.
D incorrect Testing and evaluation of RPC’s may be only a small part of an overall security review.
A company with several hundred stores has a network for the stores to transmit sales data to headquarters.The network is also used for
2 The information systems and audit directors also agreed that maintaining the integrity of the system that kept inventory data was crucial for distributing correct product quantities to stores. The best way to ensure the integrity of the application software is through
A Access controls for terminals in the receiving department
B Audit trails for items sold and received.
C Change controls for inventory software.
D Monitoring software for the network.
A incorrect Access controls for terminals in the receiving department ensure that only authorized receiving personnel have access to specific categories of information. However, they do not affect personnel in other functional areas.
B Audit trails permit audits of transaction updates to date files but do not ensure the integrity of application software.
C Change control is vital to the effectiveness of internal control. It is the set of procedures that ensure that only authorized, tested, and documented program changes are made. Such procedures include not only segregation of duties in the development and implementation processes, but also design and code walk-through, coordination of changes, review and approval by users and management, review of compliance with standards, minimum testing requirements, and backout procedures in the event of failure.
D Monitoring software is designed to monitor performance (human or machine) for specified function such as capacity used or number of tasks performed.
3 The information systems director is concerned that someone might be able to enter fictitious orders from store terminals. Of the following, the best control for minimizing the likelihood of such an occurrence is to
A no Encrypting transmissions from the stores would ensure the confidentiality of the transmissions but would not deter the entry of bogus transactions.
B Change controls for programs ensure that only program changes are authorized, tested, and documented. Initial data input also needs to be restricted and available only to those who are authorized.
C yes Password control procedures, which are type of access control, prevent the improper use or manipulation of data files and programs. They ensure that only those persons with a bona fide purpose and authorization have access to data processing. The use of passwords is an effective control in an online system to prevent unauthorized access to computer files, especially if remote terminals are involved. List of authorized persons are maintained in the computer.
D Encouraging store employees to report suspicious activity is a good practice, but suspicious activity often goes undetected or an employee does not feel comfortable reporting on a co-worker.
4 The information systems and audit directors agreed on the need to maintain security and integrity of transmissions and the data they represent. The best means of ensuring the confidentiality of satellite transmissions would be 1380
A Encryption
B Access control
C Monitoring software
D Cyclic redundancy checks
A yes Encryption encodes data before transmission over communication lines in order to prevent its use by unauthorized users but allow its recovery by authorized users. Encryption is the best means of ensuring the confidentiality of satellite transmissions. If an unauthorized individual records the transmissions, they will not be intelligible without proper decoding.
B no Access control protests against unauthorized entry to the application systems but does not protect the transmission of data.
C no Monitoring software is designed to monitor performance( human or machine ) for specified functions such as number of tasks preformed or capacity used.
D no Cyclic redundancy checks are complies computations performed with the data bits and the check bits in data transmissions to ensure the integrity, not the confidentiality, of the data.
5 Controls that are designed to provide management with assurance of the realization of specified minimum gross margins on sales are
A Directive controls
B Preventive controls
C Detective controls.
D Output controls.
A yes According to SIAS 1, “A control is any action taken by management to enhance the likelihood that established objectives and goals will b e achieved” The objective of directive controls is to cause or encourage desirable events to occur, e.g., providing management with assurance of the realization of specified minimum gross margins on sales.
B no Preventive controls deter undesirable events from occurring,.
C no Detective controls detect and correct undesirable events.\
D no Output controls relate to the accuracy and reasonableness of information processed by a system, not to operating controls.
6 According to The IIA, Internal controls are designed to provide reasonable assurance that
A Material errors or fraud will be prevented or detected and corrected within a timely period by employees in the course of performing their assigned duties.
B Management’s plans have not been circumv ented by worker collusion.
C The internal auditing department’s guidance and oversight of management’s performance is accomplished economically and efficiently.
D Management’s planning, organizing ,and directing processes are properly evaluated.
A YES According to SIAS 1,Reasonable assurance is provided when cost-effective actions are taken to restrict deviations to a tolerable level.. This implies, for example, that material errors and improper or illegal acts will be prevented or detected and corrected within a timely period by employees in the normal course of performing their assigned duties. The cost-benefit relationship is considered by management during the design of systems. The potential loss associated with any exposure or risk is weighed aga inst the cost to control it”.
B no Collusion is an inherent limitation of internal control.
C no The board of directors or a similar body is responsible for the guidance and oversight of management.
D no The examination and evaluation of management processes is a function of the internal auditing department.
7 Which of the following features of a large manufacturing company’s organization structure would be a control weakness?
A The information systems department is headed by a vice president who reports directly to the president.
B The chief financial officer is a vice president who reports to the chief executive office.
C The audit committee of the board consists of the chief executive officer, the chief financial officer, and a major shareholder.
D The controller and treasurer report to the chief financial officer.
A no This reporting relationship is a strength. It prevents the information systems operation from being dominated by a user.
B no This is a normal and appropriate reporting relationship.
C no The audit committee has a control function because of its oversight of internal as well as external auditing. It should be made up of directors who are independent of management. The authority and independence of the audit committee strengthen the position of internal auditing. The board should concur in the appointment or removal of the director of internal auditing, who should have direct, regular communication with the board( Standard 110).
D no This is a normal and appropriate reporting relationship.
8 Corporate management has a role in the maintenance of internal control. In fact, management sometimes is a control. Which of the following involves managerial functions as a control device?
A supervision of employees.
B use of a corporate policies manual
C maintenance of a quality control department
D internal auditing
A yes SIAS 1 states, ”Effective control is present when management directs systems in such a manner as to provide reasonable assurance that the organization’s objectives and goals will be achieved” Directing includes “authorizing and monitoring performance, periodically comparing actual with planned performance, and documenting these activities to provide additional assurance that systems operate as planned,” Monitoring “encompasses supervising, observing, and testing activities and appropriately reporting to responsible individuals. Monitoring provides an ongoing verification of progress toward achievement of objectives and goals.”
B no The manual advises but does not control.
C no A quality control department is a form of internal review. The manager of quality control should be independent of the operations reviewed.
D no Internal reviews (such as internal auditing )should be independent of the operations reviewed and are not a managerial function.
5.15 The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the pre-list going to the cashier and to accounting, is an example of which type of control?
A preventive
B corrective
C detective
D directive
A yes A prelisting of cash receipts in the form of checks is a preventive control. It is intended to deter undesirable events from occurring. Because irregularities involving cash are most likely before receipts are recorded, either remittance advices or a prelisting of checks should be prepared in the mailroom so as to establish recorded accountability for cash as soon as possible.
A cash register tape is a form of prelisting for cash received over the counter. One copy of a prelisting will go to accounting for posting to the cash receipts journal, and another is sent to the cashier for reconciliation with checks and currency received.
B no A corrective control rectifies an error or irregularity.
C no A detective control uncovers an error or irregularity that has already occurred..
D no A directive control causes or encourages a desirable event.
6 1.6 The audit committee strengthens the control system of a company by
A Assigning the internal auditing department responsibility for interaction with governmental agencies.
B Using the director of internal auditing as a major resource in selecting the external auditors.
C Following up on recommendations made by the director of internal auditing.
D Approving internal auditing department polices.
A no A direct strengthening of controls does not result from this activity.
BD no A direct strengthening of controls does not result from this activity.
C yes Internal auditing should have the support of management and the board of directors, including the audit committee, to gain cooperation from auditees and perform their work free from interference. Such support promotes independence and ensures broad audit coverage, adequate consideration of audit reports, and appropriate action on audit recommendations. This enhancement of the internal auditing in turn strengthens the control structure.
9 Controls can be classified according to the function they are intended to perform: for example, to discover the occurrence of an unwanted event (detective), to avoid the occurrence of an unwanted event(preventive), or to ensure the occurrence of a desirable event( directive).Which of the following is a directive control?
A Monthly bank statement reconciliations.
B dual signatures on all disbursements over a specific dollar amount.
C recording every transaction on the day it occurs
D Requiring all members of the internal auditing department to be CIAS.
A no Monthly bank statement reconciliation is a detective control. The events under scrutiny have already occurred.
B no Dual signatures on all disbursements over a specific dollar amount is a preventive control. The control is designed to deter an undesirable event.
C no Recording every transaction on the day it occurs is a preventive control.
D yes Requiring all members of the internal auditing department to be CIAs is a directive control. The control is designed to encourage a desirable event to occur, i.e. .to enhance the professionalism and level of expertise of the internal auditing department.
10 Corporate directors, management, external auditors, and internal auditors all play important roles in creating a proper control environment. Top management is primarily responsible for
A Establishing a proper environment and specifying overall internal controls.
B Reviewing the reliability and integrity of financial and the means used to collect and report such information..
C Ensuring that external and internal auditors adequately monitor the control environment.
D Implementing and monitoring controls designed by the board of directors.
A yes According to SIAS 1, “management plans, organizes, and directs in such a fashion as to provide reasonable assurance that established goals and objectives will be achieve d.” Also, “management establishes and maintains an environment that fosters control.”
B no Internal auditing is responsible for reviewing the reliability and integrity of financial information and the means used to collect and report such information.
C no Management cannot delegate its responsibilities for control to auditors.
D no The board has oversight responsibilities but ordinarily does not become involved in the details of operations.
11 A compliance audit of the reporting cycle is being planned. The auditors are specifically concerned with the control of sensitive data on quarterly reports that could be used by competitors. The distribution of sensitive financial data should be determined by
A The vice president of finance
B Approved corporate policy
C The audit committee
D The data security officer
A the vice president of finance would not determine the distribution of sensitive data.
B The scope of work of internal auditing includes reviewing the control systems established to ensure compliance with those policies, plans. procedures, laws, regulations, and contracts that could have a significant impact on operations and reports (standard 320). The treatment of confidential information is of such importance to the organization that it should be the subject of a corporate policy, which is a standing plan for repetitive situations that consists of general statements to guide managers’ thinking and action.
C Distribution of sensitive data would not be determined by the audit committee.
D the data security officer may distribute sensitive data but only in accordance with corporate policy.
12 Auditors regularly evaluate controls. Which of the following best describes the concept of control as recognized by internal auditors?
A Management regularly discharges personnel who do not perform up to expectations.
B Management takes action to enhance the likelihood that accountants and auditors design to ensure the correctness of processing.
C Control represents specific procedures that accountants and auditors design to ensure the correctness of processing.
D. control procedures should be designed from the “bottom up” to ensure attention to detail.
B yes. A control is any action taken by management to enhance the likelihood that established goals and objectives will be achieved. Management plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved. Thus, control is the result of proper planning, organizing, and directing by management.
A no. termination of employees who perform unsatisfactorily is not a comprehensive definition of control
C no. Control is not limited to processing. Moreover, it is instituted by management, not auditors.
D no. some control procedures may be designed from the bottom up, but the concept of control flows from management down through the organization.
13 Which of the following are components of a feedback control system?
A.detectors, comparators, activators.
B.Sender, medium, receiver
C.Achievement, recognition, aptitude.
D.planning, organizing, directing.
A yes. A feedback control system ensure that a desired state is attained or maintained. The control object is the variable of the system’s behavior chosen for monitoring. A detector measures what is happening in the variable being controlled. A reference point represents the standards against which performance may be measured or matched. A comparator (analyzer) is a device for assessing the significance of what is happening, usually by comparing information supplied but the detector (what is actually happening) with the established reference points (what should be happening). An activator is a decision maker. It evaluates alternative courses of corrective action available given the nature of the deviation identified and transmitted by the comparator. The output of the activating mechanism is typically corrective action.
B. it gives the elements in a communication network.
C. it states behavior motivators.
d.it concerns management functions other than controlling.
14. control has been described as a closed system consisting of six elements. One of the six elements is
a setting performance standards.
B adequately securing data files.
C approval of audit charter.
D establishment of independent audit function.
A yes. There are four essential elements of control: 1. establishment of objectives, 2. adoption of standards, 3 comparison of actual results with adopted standards, and 4.corrective action taken as needed. These four elements of control provide reasonable assurance to management that established objectives and goals will be achieved. However, Sawyer’s Internal Auditing (iia 1988,p,979),on which this question is based, describes a six-element system: 1 setting standards, 2 measuring performance,, 3 analyzing performance and comparing it with the standards, 4 evaluating deviations and bring them to the attention of appropriate persons, 5 correcting deviations, and 6 following up on corrective action.
B adequately securing data files is not an element of a closed control system.
15 Specific airline ticket information, including fare class, purchase date, and lowest available fare options, as prescribed in the company’s travel policy, is obtained and reported to departmen t management when employee purchase airline tickets from the company’s authorized travel agency. Such a report provides information for
A.quality of performance in relation to the company’s travel policy.
B.Identifying costs necessary to process employee business expense report data.
C.Departmental budget-to-actual comparisons.
D.Supporting employer’s business expense deductions.
A yes feedback is a part of the internal control cycle. It provides a basis for comparing actual performance (purchases of tickets given the available options) with standards (company policy).
B no. this ticket information is preliminary :employees may change tickets and routings prior to their trip.
C no. this information does not necessarily reflect the actual costs ultimately incurred.
D no, same as C
16 which of the following activities represents both an appropriate personnel department function and a deterrent to payroll fraud?
A distribution of paychecks.
B Authorization of overtime.
C Authorization of additions and deletions from the payroll.
D Collection and retention of unclaimed paychecks.
C yes. The payroll department is responsible for assembling payroll information (record keeping). The personnel department is responsible for authorizing employee transactions such an hiring , firing, and changes in pay rates and deductions. Segregating the recording and authorization functions helps prevent fraud.
A no. the treasurer should perform the asset custody function regarding payroll.
B no. Authorizing overtime is a responsibility of operating management.
D no. unclaimed checks should be in the custody of the treasurer until they can be deposited in a special bank account.
17. The most appropriate method to control the frequent movement of trailers loaded with valuable metal scrap from the manufacturing plant to the company scrap yard about 10 miles away would be to
A.Perform complete physical inventory of the scrape trailers before leaving the plant and upon arrival at the scrap yard.
B.Require existing security guards to log the time of plant departure and scrap yard arrival. The elapsed time should be reviewed by a supervisor for fraud.
https://www.wendangku.net/doc/02881585.html,e armed guards to escort the movement of the trailers from the plant to the scrap yard.
D.Contract with an independent hauler for the removal of scrap.
B yes. Having the security guards record the times of departure and arrival is a cost-effective control because it entails no additional expenditures. Comparing the time elapsed with the standard time allowed and investigating material variances may detect a diversion of part of the scrap.
A no. performing a complete physical inventory of the scrap at both locations would not be economically feasible.
C no. Hiring armed guards to escort the scrap trailers is unlikely to be necessary unless the scrap is extremely valuable. Logging departures and arrivals will be sufficient in most cases.
D no. using an independent hauler would provide no additional assurance of prevention or detection of wrongdoing.
18 A utility company with a large investment in repair vehicles would most likely implement which internal control to reduce the risk of vehicle theft of loss?
A.Review insurance coverage for adequacy.
B.Systematically account for all repair work orders.
C.Physically inventory vehicles and reconcile the results with the accounting records.
D.Maintain vehicles in a secured location with release and return subject to approval by a custodian.
D yes. Physical control of assets is a preventive control that reduces the likelihood of theft or other loss. Keeping the vehicles at a secure location and restricting access establishes accountability by the custodian and allows for proper authorization of their use.
A no. insurance provides for indemnification if loss or theft occurs. It reduces financial exposure but does not prevent the actual loss or theft.
B no. an internal control designed to ensure control over repair work performed has no bearing on the risk of loss.
C no Taking an inventory is a detective, not a preventive, control,
19 To minimize the risk that agents in the purchasing department will use their positions for personal gain, the organization should
A.Rotate purchasing agent assignments periodically.
B.Request internal auditors to confirm selected purchases and accounts payable.
C.Specify that all items purchased must pass value-per-unit-of-cost reviews.
D.Direct the purchasing department to maintain records on purchase prices paid, with review of such being required each 6 months.
A yes. The risk of favoritism is increased when buyers have long-term relationships with specific vendors. Periodic rotation of buyer assignments will limit the opportunity to show favoritism. This risk is also reduced if buyers are required to take vacations.
B no. Confirmation does not enable internal auditors to detect inappropriate benefits received by purchasing agents or deter long-term relationships.
C no. value-per-unit-of-cost reviews could be helpful in assuring value received for price paid but do not directly focus on receipt of inappropriate benefits by purchasing agents.
D no. review of records every 6 months does not enable the organization to detect receipt of inappropriate amounts by an agent or deter relationships that could lead to such activity.
20. Upon receipt of purchased goods, receiving department personnel match the quantity received with the packing slip quantity and mark the retail price on the goods based on a master price list. The annotated packing slip is then forwarded to inventory control and goods are automatically moved to the retail sales area. The most significant control strength of this activity is
A.Immediately pricing goods for retail sale.
B.Matching quantity received with the packing slip.
https://www.wendangku.net/doc/02881585.html,ing a master price list for marking the sale price.
D.Automatically moving goods to the retail sales area.
C yes. Use of the master price list assures that the correct retail price is marked.
A no. Timing is not as important as the accuracy of prices
B no. matching quantity received with the packing slip does not ensure receipt of the quantity ordered.
D no. Goods may or may not be needed in retail sales.
21 Management can best strengthen internal control over the custody of inventory stored in an off-site warehouse by implementing.
A . Reconciliation of transfer slips to/ from the warehouse with inventory records.
B . increases in insurance coverage.
C. regular reconciliation of physical inventories to accounting records.
D, Regular confirmation of the amount on hand with the custodian of the warehouse.
C yes. The most effective control over off-site inventory is the periodic comparison of the recorded accountability with the actual physical inventory.
A no. examination of documents is a less effective procedure than actual observation of the inventory.
B no. Increasing insurance coverage helps protect the business against losses but does not strengthen internal control over the custody of inventory.
D no. Confirming with the custodian the amount of inventory on hand does not verify that the inventory is actually at the warehouse.
22. Which of the following controls could be used to detect bank deposits that are recorded but never made?
A.Establishing accountability for receipts at the earliest possible time.
B.Linking receipts to other internal accountabilities (i.e., collections to either accounts receivable or sales).
C.Consolidation cash receiving points.
D.Having bank reconciliations performed by a third party.
D. yes. Having an independent third party prepare the bank reconciliations would reveal any discrepancies between recorded deposits and the bank statements. A bank reconciliation compares the bank statement with company records and resolves differences caused by deposits in transit, outstanding checks, NSF checks, bank charges, errors, etc.
A no. This control is imp lemented before deposits are prepared and recorded in the company’s books. The problem here is the detection of the diversion of funds that have been properly recorded upon receipt.
B C same as A.
23 An adequate system of internal controls is most likely to detect a fraud perpetrated by a
A.Group of employees in collusion.
B.Single employee.
C.Group of managers in collusion.
D.Single manager.
B yes. Segregation of duties and other control procedures serve to prevent or detect a fraud committed by an employee acting alone. One employee may not have the ability to engage in wrongdoing or may be subject to detection by other employees in the course of performing their assigned duties. However, collusion may circumvent controls. For example, comparison of recorded accountability with assets may fail to detect fraud if persons having custody of assets collude with record keepers.
A no. A group has a better chance of successfully perpetrating a fraud than does an individual employee.
C no. management can override controls.
D no. even a single manager may be able to override controls.
24. A restaurant chain has over 680 restaurants. All food orders for each restaurant are required to be input into an electronic device which records all food orders by food servers and transmits the order to the kitchen for preparation. All food servers are responsible for collecting cash for all their orders and must turn in cash at the end of their shift equal to the sales value of food ordered for their I.D. number. The manager then reconciles the cash received for the day with the computerized record of food orders generated. All differences are investigated immediately by the restaurant. Corporate headquarters has established monitoring controls to determine when an individual restaurant might not be recording all its revenue and transmitting the applicable cash to the corporate headquarters. Which one of the following woule be the best example of a monitoring control?
A.The restaurant manager reconciles the cash received with the food orders recorded on the computer.
B.All food orders must be entered on the computer, and segregation of duties is maintained between the food servers and the cooks.
C.Management prepares a detailed analysis of gross margin per store and investigates any store that shows a significantly lower gross margin.
D.Cash is transmitted to corporate headquarters on a daily basis.
C yes. Monitoring is a process that assesses the quality of internal control over time. It involves assessment by appropriate personnel of the design and operation of controls and the taking of corrective action. Monitoring can be done through ongoing activities or separate evaluations. Ongoing monitoring procedures are built into the normal recurring activities of an entity and include regular management and supervisory activities. Thus, analysis of gross margin data and investigation of significant deviations is a monitoring process.
A no. The manager’s activity is an example of a reconciliation control applied at the store level. Monitoring is an overall control that determines. Whether other controls are operating effectively.
B no. the division of duties is an operational control.
D no. daily transmission of cash is an operational control.
25 . Insurance companies are beginning to receive hospitalization claims directly from hospitals
by computer media: no paper is transmitted from the hospital to the insurance company. Which of the following controls would be most effective in detecting fraud in such environment?
https://www.wendangku.net/doc/02881585.html,e integrated test facilities to test the correctness of processing in a manner that is transparent to data processing.
B.Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic classes for investigation by the claims department.
https://www.wendangku.net/doc/02881585.html,e generalized audit software to match the claimant identification number with a master list of valid policyholders
D.Develop batch controls over all items received from a particular hospital and process those claims in batches.
B yes. Monitoring assesses the quality of internal control over time. Management considers whether internal control is properly designed and operating as intended and modifies it to reflect changing conditions. Monitoring may be in the form of separate, periodic evaluations or of ongoing monitoring. Ongoing monitoring occurs as part of routine operations. It includes management and supervisory review, comparisons, reconciliations, and other actions by personnel as part of their regular activities. Thus, monitoring of the number and nature of claims may seve to detect failures of internal controls
A no. an ITF is useful in determining the correctness of processing of validly entered transactions. The issue in this case is the validity of the entered transactions.
C no. An edit control should be built into the application to test for valid policy numbers.
D no. Batch controls are designed to ensure that all items submitted are processed, i.e., that they are not lost or added to. Batch controls serve a control purpose, but the major concern is the validity of the input.
26. Control self-assessment is a process that involves employees in assessing the adequacy of controls and identifying opportunities for improvement within an organization. Which of the following are reasons to involve employees in this process?
1). Employees become more motivated to do their jobs right.
2). Employees are objective about their jobs.
3). Employees can provide an independent assessment of internal controls.
4). Managers want feedback from their employee.
A . 1) and 2)
B. 3) and 4)
C .1) and 4)
D .2) and 4).
C yes. Control self-assessment is consistent with modern concepts of continuous improvement of quality in every aspect of organization activities. For this approach to be effective, all members of the organization must participate. Employees should be empowered, that is, adequately trained, provided with necessary information and tools, involved in important decisions, and fairly compensated. Participation by employees has a positive effect on motivation because it tends to increase commitment to the job and resulting ego satisfaction. Moreover, full employee participation requires two-way communication and therefore encourages feedback from employees.
A no. employees often lack the perspective to be objective about their jobs or performance.
B no. Although employees can be involved in assessing internal controls, their assessments are not
independent.
D no. same as A.
27. The element(s) of control self-assessment ( CSA ) include
Ⅰ. Treating participating employees as process owners
Ⅱ. Taking surveys of employees regarding risks and controls
Ⅲ. Interviewing employees separately in the field.
A only Ⅰ
B only Ⅱ.
C only Ⅱ.and Ⅲ.
D Ⅲ., Ⅱ.and Ⅰ
A yes. According to the IIA, an element of CSA i s “ The gathering of a group of people into a same time/ same place meeting, typically involving a facilitation seating arrangement (U-shaped table) and a meeting facilitator. The participants are “process owners” management and staff who are involved with the particular issues under examination, who know them best, and who are critical to the implementation of appropriate process controls.”
B no. CSA is a workshop-facilitation approach to self-assessment that is structured, documented, and repetitive. Thus, it should be contrasted with an approach that merely surveys employees regarding risks and controls. Furthermore, CSA involves gathering a group for a meeting, not separate interviews in the field.
C and
D same as B.
28. Organizations in which new product groups are often created, a structure that combines functional and product departmentation and creates dual lines of authority would be optimal. The best structure for this organization would be
A.Professional bureaucracy.
B.Mechanistic.
C.Matrix.
D.Machine bureaucracy.
C yes. A matrix organization is characterized by vertical and horizontal lines of authority because the product manager borrows specialists from various functions who continue to report to their functional managers. Thus, the resulting arrangement is a hybrid of functional and product departmentation. The advantage is flexibility and rapidity of response to new conditions. The disadvantage is violation of the unity-of-command concept.
A no. A professional bureaucracy is a structure with high complexity and low formalization in which highly trained specialists have great autonomy.
B no. a mechanistic structure is complex, formal, and centralized. It adheres to the unity-of-command concept.
D no. same as B.
29. The following principles characterize certain organizational structures:
Ⅰ. A superior can delegate the authority to make decisions but cannot delegate the ultimate
responsibility for the results of those decisions.
Ⅱ. A supervisor’s span of control should not exceed seven subordinates.
Ⅲ. Responsibility should be accompanied by adequate authority.
Ⅳ. Employees at all levels should be empowered to make decisions.
A Ⅰand Ⅲ.
b. Ⅰand Ⅳ
c. Ⅱand Ⅲ
d. Ⅲand Ⅳ
A yes. Certain basic concepts of authority and responsibility apply in all organizations. Authority is the right to direct the actions of others. Responsibility is the duty to perform. Responsibility and commensurate authority can and should be delegated, but the person in the higher position nevertheless retains ultimate responsibility.
B no. employee empowerment is not a characteristic of a hierarchical organization.
C no. In accordance with the principles of contingency design, an open or organic organization adopts a span of control that reflects situational factors. Hence, a wide span of control may be indicated, for example, when subordinates perform similar duties in the same work area little direction is required.
D no. same as B.
30. A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. Considering these facts, the most common structure for this organization would be
A.functional departmentation.
B.Product departmentation.
C.Matrix organization.
D. Divisional organization.
A yes. Organization by function is common to almost all firms at some level. It avoids duplication of effort and allows for specialization and applied training.
B no. product departmentation is appropriate for multilane firms.
C no. matrix organization is most often used in research and development and project management. It combines functional and product departmentation.
D no. divisional organization is appropriate for large firm.
31. A new manager of a production department has been asked to assess the effectiveness of that department. The organization needs to satisfy both internal and external constituents and takes a broad approach to effectiveness. In order to complete the assignment successfully, the manager should
A.measure the daily productivity of the department.
B.Do a survey of employee morale, as it is often a major underlying factor in productivity.
https://www.wendangku.net/doc/02881585.html,pare the past year’s production against annual goals.
D.Consider short-, medium-, and long-term effectiveness.
D yes. Kreitner (6th ed., pages 279-80) states, “organizational effectiveness can be defined as meeting organizational objectives and prevailing societal expectations in the near future, adapting and developing in the intermediate future, and surviving in the distant future. In the near term
(about one year), if should be effective in achieving its goals, efficient in its use of resources, and a source of satisfaction to its constituencies (owners, employees, customers, and society). In the intermediate term (2 to 4 years), it should adapt to new possibilities and obstacles and develop its abilities and those of its members. In the long term (5+years), the organization should be able to survive in an uncertain world.
A no. daily productivity relates to short-term effectiveness only.
B no. A survey of employee morale may contribute to assessing effectiveness, but it is not sufficient for assessing overall effectiveness.
C no Comparing production against goals is a measure of short-term effectiveness.
32. For the past several years, many organizations have attempted to reduce administrative costs and respond more rapidly to customer and competitive demands. One method is to eliminate layers of middle management. The element of organization structure affected by such reductions is
A.spatial differentiation.
B.formalization.
C.Vertical differentiation.
D.formalization of jobs.
C yes. Vertical differentiation concerns the depth of the organizational hierarchy. The greater the number of levels, the more complex the organization, the greater the potential for information distortion, the more difficult the coordination of management activities, and the slower and less effective the response to changing conditions.
A no. spatial differentiation refers to the degree of geographic dispersion of facilities and personnel.
B no. formalization refers to the degree of job standardization through descriptions and rules.
D no same as B.
33. When an organization depends to a great extent on its environment, which of the following statements best characterizes the relationshi p among an organization’s environment, the level of uncertainly it faces, and its structure? The more dynamic and complex the environment, the
A.more uncertainty the organization will face and the more organic the structure should be.
B.More uncertainty the organization will face and the more mechanistic the structure should be.
C.Less uncertainty the organization will face and the more autocratic the structure should be.
D.Less uncertainty the organization will face and the more organic the structure should be.
A .yes .A dynamic and complex organizational environment faces constant change, so the level of uncertainty increases. The more uncertainty an organization faces, the more organic the structure should be. Organic organizations tend to be flexible and adaptive to change.
B no. A dynamic and complex environment is more uncertain, so it requires a flexible structure.
C and
D same as B.
34. In what form of organization does an employee report to multiple managers?
A. bureaucracy.
B. matrix.
C. departmental.
D.. mechanistic.
B yes. A matrix organization (project management) is characterized by vertical and horizontal lines of authority. The project manager borrows specialists from line functions as needed. This manager’s authority is limited to the projec t, and the specialists will otherwise report to the line managers.
A . in a bureaucracy ,each subordinate reports to a single manager.
C no. departmental organization structures represent the typical organization with unified and clear single lines of authority.
D no. mechanistic organization structure is another term for a bureaucracy.
35. The relationship between organizational structure and technology suggests that, in an organization using mass production technology (for example, automobile manufacturing), the best structure is
A . organic, emphasizing loose controls and flexibility.
B. matrix, in which individuals report to both product and functional area managers.
C mechanistic, that is , highly formalized, with tight controls.
D Integrated, emphasizing cooperation among departments.
C yes. According to Joan Woodward’s work on the relation ship of technology and structure in manufacturing, companies may be categorized as engaged in unit production (units or small batches), mass production (large batches), or process production( continuous processing). Mass production is most effective if the entity has a mechanistic structure characterized by moderate vertical differentiation, high horizontal differentiation, and high formalization. This structure is one in which tasks are well-defined, most communication is downward, and control is tight.
A no. an organic structure is flexible and therefore not suited to mass production.
B no. matrix is not a type of structure but rather a type of departmentation.
D no. in integrated structure is a nonsense term in this context.
36. The structure of an organization generally follows its overall strategy. At one end are loosely structured, organic organizations. At the other end are highly centralized, tightly controlled, mechanistic organizations. Consider the overall strategy of a company that is a pioneer in the combination of laser and robotic technologies. The company’s scientists and engineers hold many patents. They are continually looking for ways to improve their products as well as to introduce new ones. Identify the most appropriate structural option for this organization.
A . mechanistic.
B imitative
C organic
D bureaucratic.
C yes. Organization structure depends on the company’s overall strategy. This or ganization has adopted an innovation strategy. It introduces major new products or services. The structure that provides the flexibility required for major innovation is organic, a form of organization characterized by a loose structure, low division of labor, low formalization, and decentralization.
A no. a mechanistic structure is appropriate for organizations focusing on cost minimization through tight controls, Extensive division of labor, high formalization, and centralization.
B no .an imitative strategy is not adopted by true innovators but rather by companies that move into new markets only after smaller competitors have demonstrated the potential for success.
Imitation strategies are best suited to a structure that combines mechanistic and organic components.
D no bureaucracies are mechanistic, not organic.
37. Discount stores and sellers of generic grocery products keep prices low and innovate only when there are low-risk, high-payback projects. They are pursuing a(an)
A.innovation-minimization strategy.
B.Imitation strategy.
C.Cost-minimization strategy.
D.Initiation strategy.
C yes. Research suggests that organizational structure follows strategy. A cost-minimization strategy tightly controls costs, avoids unnecessary innovation or marketing expenses, and cuts prices in selling a discount product. The sellers of generic grocery products pursue this strategy. A.no. innovation minimization is not a type of strategy. An innovation strategy emphasizes the introduction of new products or services.
B.No. an imitation strategy seeks to introduce new products or enter new markets only after their viability has been proven.
D no. there is no initiation strategy.
38. As an organization increases the number of employees, its structure becomes more complex. Rules become more formalized and more supervisors are hired to direct the increased numbers of subordinates. What is the nature of the size-structure relationship?
A.the size-structure relationship is linear.
B.The structure becomes fixed once an organization attains a level of about 200 employees.
C.The size-structure relationship is concave.
D.None of the answers are correct.
D yes. As an organization increases in size, its structure tends to become more formal and mechanistic. More policies and procedures are necessary to coordinate the increased number of employees, and more managers must be hired. However, the relationship between size and changes in structure is linear only within a certain range. For example, adding 100 employees to a company with 100 employees is likely to cause significant structural change, but adding the same number to a workforce of 10000 is likely to have little impact. By the time a company reaches a certain size (1500 to 2000 or more), it usually has most of the qualities of a mechanistic structure.
A no. the size-structure relationship is likely to be linear but only within a narrow range.
b. and c no .same as a.
39. In general, as organizations grow in size, their strategies.
A.become more ambitious, and they often expand their activities within their industry.
B.Focus on vertical integration, and their structures consequently must become more centralized.
C.Change from a focus on a diverse set of products to a focus on a single product line.
D.Follow and are determined by their internal structures.
A yes. The strategies of larger organizations tend to be more ambitious and complex. Thus, a company may expand from one product line to many. The result is a need for more complicated
coordination methods.
B no. a company with diversified products may decide to create independent, decentralized divisions.
C no. focusing on a single product line rather than a diverse set of products is not a strategy for a growing company.
D no. structure follows strategy.
40. With the shift in some countries’ economies toward service industries. A new form of organization has developed. This organization structure is referred to as the professional bureaucracy. While this structure resembles the machine bureaucracy (which relies on standardized work processes ) in several respects, it is different in one key aspect. This significant difference is that in a professional bureaucracy.
A.senior management has had to give up a substantial amount of control.
B.Tasks are accomplished with a high degree of efficiency.
C.There is strict adherence to rules.
D.There is a tendency for subunit conflicts to develop.
A yes . a professional bureaucracy (e.g.,a university or library )is a complex and formal but decentralized organization in which highly trained specialists have great autonomy. The jobs performed by these professionals require years of education and training. By their nature, such jobs can be performed effectively only if the employees are afforded substantial autonomy.
B no. both a machine bureaucracy and a professional bureaucracy can accomplish routine tasks in a highly efficient manner.
C.no . both organizational structures thrive on rules.
D.No . subunit conflicts are typical of bureaucracies. Specialization tends to result in a focus on subunit rather than organizational objectives.
41. With the shift in some countries’ economies toward service industries, a new form of organization has developed. This organization structure is referred to as the professional bureaucracy. While this structure resembles the machine bureaucracy (which relies on standardized work processes) in several respects, it is different in one key aspect. This significant difference is that in a professional bureaucracy.
A.senior management has had to give up a substantial amount of control.
B.Tasks are accomplished with a high degree of efficiency.
C.There is strict adherence to rules.
D.There is a tendency for subunit conflicts to develop.
A yes. A professional bureaucracy (e.g., a university or library) is a complex and formal but decentralized organization in which highly trained specialists have great autonomy. The jobs performed by these professionals require years of education and training. By their nature, such jobs can be performed effectively only if the employees are afforded substantial autonomy.
C no. both organizational structures thrive on rules.
B no both a machine bureaucracy and professional bureaucracy can accomplish routine tasks in a highly efficient manner.
D no subunit conflicts are typical of bureaucracies. Specialization tend to result in a focus on subunit rather than organizational objectives.
42. Internal auditors need to be aware of the advantages and disadvantages of various organizations structures. A substantial duplication of functions characterizes which of the following structures?
A.simple structure.
B.divisional structure.
C.machine bureaucracy.
D.Professional bureaucracy.
B yes. A division is essentially a self-contained organization. Hence, it must perform all or most of the functions of the overall organization of which it is a part. It is characterized by substantial duplication of functions when compared with more centralized structures.
A no. a simple structure has low complexity and formality, and authority is centralized. Its small size and simplicity usually precludes significant inefficiency in the use of resources.
C no. a machine bureaucracy is a complex, formal, and centralized organization that performs highly routine tasks, groups activities into functional departments, has a strict chain of command, and distinguishes between line and staff relationships.
D no. a professional bureaucracy (e.g., a university or library )is a complex and formal but decentralized organization in which highly trained specialists have great autonomy. Duplication of functions is minimized. For example, a university would have only one history department.
43. Routine tasks, which have few exceptions and problems that are easy to analyze, are conducive to
A.formalized structure, in which procedures manuals and job descriptions are common.
B.Decentralized decision making, in which decisions are pushed downward in the organization.
https://www.wendangku.net/doc/02881585.html,anic structures that emphasize adaptability and flexibility to changing circumstances.
D.High degrees of job satisfaction on the part of the employees performing them.
A yes. Technology has been viewed in terms of two dimensions: task variability and problem analyzability, or the exceptions encountered in work and the search procedures for responding to the exceptions, respectively. Routine tasks have few exceptions, and the search for solutions is well defined. Because routine tasks change little overtime, they are well suited to a mechanistic structure. One characteristic of such a structure is high formalization.
B no. decentralized decision making is not suited to routine tasks but to organic structures.
C no organic structures are best when problems are poorly defined.
D no. job satisfaction is often low in routine and repetitive tasks.
44. Centralization and decentralization are defined according to the relative delegation of decision-making authority by top management. Many managers believe that decentralized organizations have significant advantages over centralized organizations. A major advantage of a decentralized organization is that
A.decentralized organizations are easier to control.
B.Decentralized structures streamline organizations and eliminate duplication of resources.
C.Decentralized organizations have fewer managers than centralized organizations.
D.Decentralized organizations encourage increased initiative among employees.
D yes. A decentralized organization allows lower-level employees to participate in decision making. This increased involvement encourages initiative and creative thinking and is especially
appropriate in complex and rapidly changing environments.
A .no. decentralized organizations are more difficult to control.
B no. centralized structures streamline organizations and eliminate duplication of resource.
C no. the number of managers is not related to the degree of centralization or decentralization but is a function of the span of control.
45. A flat organization structure is one with relatively few levels of hierarchy and is characterized by wide spans of management control. A tall organization has many levels of hierarchy and narrow spans of control. Which of the following situations is consistent with a flat organization structure ?
A.tasks require little direction and control of subordinates.
B. Work areas are geographically dispersed.
C.Tasks are highly complex and varied.
D.Subordinates perform distinctly different tasks.
A yes. Flat structures have the advantages of fast information flow from top to bottom of the organization and increased employee satisfaction. Tall structures are faster and more effective at problem resolution because of the increased frequency of interaction between superior and subordinate and the greater order imposed by the hierarchy. For a flat structure to be successful, employees must be able to work without supervision much of the time because a manager with many employees has little time for each one.
B no. geographically dispersed work areas are very difficult for a manager with many subordinates to control.
C no. tasks that are highly complex and varied are more appropriate for a narrow span of control.
D no. a narrow span of control ( a tall structure is more appropriate when subordinates perform distinctly different tasks.
46. The optimal span of control of a manager is contingent upon several situational variables. For instance, a manager supervising workers within the same work area who are performing identical tasks that are simple and repetitive would best be able to supervise
a.an unlimited number of employees.
b.Only a few workers (a narrow span of control).
c.A relatively large number of employees (a wide span of control).
d.Fewer workers than if the workers were geographically dispersed.
C correct. In any situation. There are underlying variables that influence the number of subordinates a manager can supervise. In general, if jobs are similar, procedures are standardized, and physical dispersion is minimized, a wide span of control is most effective.
A incorrect. Although a manager under these conditions would be able to supervise a large number of employees, an upper limit must exit.
b. incorrect. The conditions described support a wide rather than a narrow span.
D incorrect. Geographical dispersion would decrease rather than increase the span of control.
47. Control by management is the result of effective and proper
A . planning, organizing, and directing of organizational activities.