IIA-CIA-PART4 Exam Questions and Answers

QUESTION: 41

Which of the following is a source of communication breakdown within an organization due to a sense of superiority by members of a particular culture?

Perceptual problem.
Stereotyping.
Ethnocentrism.
Uncertainty avoidance.

Answer(s): C

Explanation:

Ethnocentrism is the attitude that one's own group is superior. It is perpetuated through the value structures and nationalistic spirit of the people.

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QUESTION: 42

Which of the following management orientations is characterized by an organization's efforts to adapt the product and marketing program to each local environment?

Ethnocentric.
Polycentric.
Geocentric.
Fegiocentric.

Answer(s): B

Explanation:

A polycentric attitude assumes that cultural differences require local managers to make most decisions because they are more knowledgeable about local conditions than are central administrators. Thus, development of local managerial talent is crucial. Another result is that foreign operating performance is primarily evaluated based on results. As a consequence, methods, training, and incentives vary significantly among subsidiaries. Furthermore, control is predominantly local, the firm is identified with the nationality of the host nation, and relatively little communication occurs with central administration or among subsidiaries. One disadvantage is that local operations may have inefficiencies because of duplication of activities. Another disadvantage is loss of goal congruence between local entities and the firm as a whole. Advantages are more capable and motivated local managers, better results in local markets, local development of new product ideas, and stronger support by host governments. Accordingly, the polycentric attitude adapts to each local environment.

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QUESTION: 43

According to research on path-goal leadership styles done in many countries, which styles are neither the most nor the least accepted internationally?

I). Directive
II). Supportive
III). Participative
IV). Achievement-oriented

land II).
land Ill.
II and IV).
Ill and IV).

Answer(s): C

Explanation:

The participative style, although not always the best, is the most widely accepted internationally. The directive style is the least accepted internationally. It was not deemed appropriate in the U.S., U.K., Canada, Australia, Germany, and Sweden. Theachievement orientedstyle was found unacceptable in such countries as Brazil, France, Italy, and Japan. The supportive style was not accepted in such countries as Brazil, France, India, and Sweden.

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QUESTION: 44

With the globalization of economies, many organizations have expanded their operations to international locations. As an advisor to management, an internal auditor will most likelyrecommend that a geocentric, or worldwide, attitude be adopted. Select the reason the geocentric attitude is preferred.

It promotes a simpler organizational structure.
It provides greater autonomy for host country managers.
It provides the best balance of local and worldwide objectives.
It promotes tighter organizational control.

Answer(s): C

Explanation:

According to Howard Perlmutter, the geocentric attitude toward international operations is world oriented. The intention is to balance local and worldwide objectives in all aspects of operations, to maintain global standards while permitting local managers to exercise appropriate discretion.

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QUESTION: 45

Cultures have been described as low-context or high-context. Which culture is high- context?

Germany.
Saudi Arabia.
Great Britain.
Swillerland.

Answer(s): B

Explanation:

Hall drew a distinction between high-context and low-context cultures. In high-context cultures (e.g., Japanese, Chinese, Arabic, and Korean), much meaning is transmitted by nonverbal cues and situational circumstances. Thus, a person's status in a firm, rank in society, and reputation convey the primary message. In low- context cultures (e.g., Northern Europe and North America), primary messages are transmitted verbally. Hence, precise written contractual agreements are highly valued. In contrast, social events are more highly valued in a highcontext culture.

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IIA IIA-CIA-PART4 Exam (page: 9) IIA Certified Internal Auditor - Part 4, Business Management Skills Updated on: 15-Feb-2026

QUESTION: 41

Explanation:

QUESTION: 42

Explanation:

QUESTION: 43

Explanation:

QUESTION: 44

Explanation:

QUESTION: 45

Explanation:

IIA IIA-CIA-PART4 Exam (page: 9)
IIA Certified Internal Auditor - Part 4, Business Management Skills
Updated on: 15-Feb-2026