In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?
Correct Answer: D
IIA-CIA-Part3 Exam Question 332
During which phase of the contracting process are contracts drafted for a proposed business activity?
Correct Answer: C
Comprehensive and Detailed In-Depth Explanation: The development phase of contracting involves drafting, negotiating, and finalizing the contract terms for a business activity. This phase ensures that agreements align with legal and operational requirements before execution. Option A (Initiation phase) involves identifying needs and planning but does not include drafting contracts. Option B (Bidding phase) focuses on soliciting and evaluating proposals but does not yet involve contract drafting. Option D (Management phase) occurs after contracts are finalized and focuses on monitoring performance. Since the development phase is when contracts are written and finalized, Option C is correct. Reference: IIA Procurement & Contract Management Framework
IIA-CIA-Part3 Exam Question 333
After auditing the treasury function, the internal audit team issued a final report, which included an action plan agreed with management. When the audit team returned three months later to follow up on the action plan, management indicated that the plan had not been implemented because the old treasury system was being replaced with a new system. Which of the following is the most appropriate audit response?
Correct Answer: D
When management has not implemented agreed action plans, the internal audit team must escalate the matter to the CAE. The CAE is responsible for discussing such cases with senior management to understand the reasons and determine next steps. Option A is inappropriate because it is management's responsibility-not internal audit's-to propose action plans. Option B disregards the initial high-risk issue. Option C (escalation to the board) is premature unless senior management fails to act. Thus, the correct response is Option D: report to the CAE, who should discuss with senior management. Reference: IIA Standards - Standard 2500: Monitoring Progress; Standard 2600: Communicating the Acceptance of Risks.
IIA-CIA-Part3 Exam Question 334
What would be the most relevant risk related to a bring-your-own-device policy?
Correct Answer: A
The most relevant BYOD risk is data leakage because personally owned devices may access organizational networks, applications, email, files, and databases. These devices may be lost, stolen, infected with malware, poorly patched, connected to insecure networks, or used by unauthorized individuals. Option B may indicate training needs, but it is not the primary BYOD risk. Option C is unrelated because personally owned devices are not normally capitalized as organizational assets. Option D may occur, but the larger organizational exposure is loss or disclosure of business data, not the financial loss of the device itself. Internal audit should review BYOD policies, mobile device management, encryption, remote wipe, access restrictions, monitoring, and user agreements. Therefore, Option A is correct.
IIA-CIA-Part3 Exam Question 335
To execute its new strategy of differentiation, based mainly on innovation, flexibility, and responsiveness, while maintaining control on operations and reducing any duplication of resources, an organization has introduced many changes that are relevant to its organizational structure. Which of the following structures would best fit the new strategy?
Correct Answer: C
A team approach best fits a differentiation strategy based on innovation, flexibility, and responsiveness while still limiting unnecessary resource duplication. Cross-functional teams can bring together marketing, operations, finance, technology, and product expertise to respond quickly to customer needs and support innovation. A functional structure can reduce duplication, but it may be slower and less responsive across departmental boundaries. A divisional structure supports product or market focus, but it often duplicates resources across divisions. A virtual network structure provides flexibility through outsourcing or external partnerships, but it may reduce direct operational control. Internal auditors should evaluate whether organizational structure supports strategy, accountability, coordination, and control. Therefore, Option C is correct.
