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Financial CIA-III Exam (page: 40)
Financial The Certified Internal Auditor Part 3
Updated on: 17-Feb-2026

Viewing Page 40 of 312
CIA-III PDF 1554 Questions

On a balanced scorecard, which of the following is not a customer measure?

  1. Market share.
  2. Economic value added.
  3. Service response time.
  4. Warranty expense.

Answer(s): B

Explanation:

Customer measures include market share and its trend, service response time, delivery performance, warranty returns, expense, complaints, and survey results. Economic value added, or E1 A, is a financial measure.



Under the balanced scorecard concept, employee satisfaction and retention are measures used under which of the following perspectives?

  1. Customer.
  2. Internal business.
  3. Learning and growth.
  4. Financial.

Answer(s): C

Explanation:

The balanced scorecard is an accounting report that connects the firm's critical success factors CSFs) determined in a strategic analysis to measures of its performance. CSFs are financial and nonfinancial measures. For the learning, growth, and innovation perspective, the CSFs may be development of new products, promptness of their introduction, human resource development, morale, and competence of the workforce. Measures of employee satisfaction, retention, and competence may include RD personnel qualifications, hours of training, skill set levels attained, personnel turnover, and personnel complaints and survey results.



On a balanced scorecard, which is more of an internal process measure than an external based measure?

  1. Cycle time.
  2. Profitability.
  3. Customer satisfaction.
  4. Market share.

Answer(s): A

Explanation:

Cycle time is the manufacturing time to complete an order. Thus, cycle time is strictly related to internal processes. Profitability is a combination of internal and external considerations.
Customer satisfaction and market share are related to how customers perceive a product and how competitors react.



Which one of the following is not a characteristic of an innovative manufacturing company?

  1. Emphasis on continuous improvement.
  2. Responsiveness to the changing manufacturing environment.
  3. Emphasis on existing products.
  4. Improved customer satisfaction through product quality.

Answer(s): C

Explanation:

Innovative companies are customer driven. Because customers demand ever better quality and competitors are attempting to provide that quality, continuous improvement called kaizen by the Japanese) is essential for such companies. Thus, the flaw of innovative products and services must be continuous. Simply emphasizing existing products is not an effective strategy for most organizations.



A balanced scorecard is primarily concerned with:

  1. Staff.
  2. Structure.
  3. Strategy.
  4. Systems.

Answer(s): C

Explanation:

The scorecard is primarily a tool to assist the organization in describing and clarifying its strategy and then alignment of its performance measures to that strategy.



Viewing Page 40 of 312



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