IIA Updated IIA-CIA-Part3 Exam Questions and Answers by arwen

Job enrichment is a motivational strategy where employees are given more control, responsibility, and meaningful tasks in their roles. It aims to increase job satisfaction, personal growth, and motivation by making work more engaging and fulfilling.

Let’s analyze each option:

Option A: Validation of the achievement of their goals and objectives

Incorrect.

While job enrichment may contribute to achieving personal and professional goals, its primary purpose is not just validation but improving employee engagement and motivation.

Option B: Increased knowledge through the performance of additional tasks

Incorrect.

Job enlargement (not job enrichment) involves assigning additional tasks without necessarily increasing responsibility or autonomy.

Job enrichment focuses on providing meaningful and challenging work, not just adding tasks.

Option C: Support for personal growth and a meaningful work experience

Correct.

Job enrichment enhances job satisfaction by giving employees greater autonomy, responsibility, and purpose in their roles.

It encourages personal and professional development, leading to a more meaningful work experience.

IIA Reference: Internal auditors assessing human resource and organizational performance management focus on employee motivation strategies, including job enrichment. (IIA Practice Guide: Talent Management and Human Capital Risks)

Option D: An increased opportunity to manage better the work done by their subordinates

Incorrect.

Job enrichment does not necessarily focus on managing subordinates but rather on enhancing individual job roles by making them more fulfilling.

Thus, the verified answer is C. Support for personal growth and a meaningful work experience.

Understanding the Contracting Process PhasesThe contracting process generally follows these phases:

Initiation Phase: Identifies the need for a contract and sets initial objectives.

Bidding Phase: Potential vendors or partners submit proposals, and negotiations begin.

Development Phase: Contracts are drafted, negotiated, and finalized before execution.

Management Phase: The contract is executed, monitored, and evaluated for compliance.

Why Option C is Correct?

The development phase is where contracts are formally drafted based on agreements made during bidding and negotiation.

This phase includes legal review, compliance verification, and risk assessment, ensuring the contract aligns with business objectives and legal requirements.

IIA Standard 2110 – Governance requires auditors to assess how contract risks are managed, ensuring formal contract development processes.

Why Other Options Are Incorrect?

Option A (Initiation phase):

This phase defines the business need but does not involve drafting contracts.

Option B (Bidding phase):

In this phase, businesses solicit proposals, but contracts are not fully drafted until vendor selection.

Option D (Management phase):

The management phase involves executing and monitoring the contract, not drafting it.

Contracts are drafted during the development phase after vendor selection and before execution.

IIA Standard 2110 supports governance over contract risk and formal agreement processes.

Final Justification:IIA References:

IPPF Standard 2110 – Governance (Contract Risk & Compliance)

COSO ERM – Risk Management in Contracting

Understanding Maslow’s Hierarchy of Needs

Maslow’s theory categorizes human needs into five levels:

Physiological Needs (Basic survival: food, water, shelter)

Safety Needs (Job security, stability, financial security)

Social Needs (Belonging, relationships, team interactions)

Esteem Needs (Recognition, achievement, respect)

Self-Actualization (Self-Fulfillment) – Reaching one’s full potential, professional growth, and personal development

Why Option B is Correct?

Offering an assignment for professional growth and advancement supports self-actualization (self-fulfillment).

This aligns with Maslow’s highest level, where individuals seek to maximize their potential and achieve personal excellence.

IIA Standard 1100 – Independence and Objectivity emphasizes the importance of professional growth in auditing and management roles.

Why Other Options Are Incorrect?

Option A (Esteem by colleagues):

Professional growth may increase esteem, but the focus here is on self-fulfillment, not external recognition.

Option C (Sense of belonging in the organization):

Belonging is a lower-level need (social level), while professional growth aligns with self-actualization.

Option D (Job security):

Job security falls under safety needs, which is a lower-tier concern.

Professional development aligns with self-actualization, the highest level in Maslow’s hierarchy, which focuses on maximizing potential.

IIA Standard 1100 supports professional growth as part of career advancement in internal auditing.

Final Justification:IIA References:

Maslow’s Hierarchy of Needs (Self-Actualization Level)

IPPF Standard 1100 – Independence and Objectivity

Absorption costing is a costing method that allocates all manufacturing costs (both variable and fixed) to the cost of a product. In this method, fixed manufacturing overhead costs are treated as indirect product costs because they are not directly traceable to a single unit of production but are still part of the total cost of producing goods.

Let’s analyze each option:

Option A: Direct, product costs.

Incorrect. Direct costs are costs that can be traced directly to a specific product, such as direct materials and direct labor. Fixed manufacturing overhead is not a direct cost because it is spread across all units produced.

Option B: Indirect product costs.

Correct. Fixed manufacturing overhead costs (such as rent, depreciation, and utilities for the production facility) are indirect costs because they support the entire production process rather than a specific product. However, under absorption costing, they are still treated as product costs and allocated to inventory.

IIA Reference: The IIA’s guidance on cost allocation states that absorption costing assigns all manufacturing costs (including fixed overhead) to products. (IIA Practice Guide: Cost and Profitability Analysis)

Option C: Direct period costs.

Incorrect. Period costs are expensed in the period they occur, while absorption costing treats fixed manufacturing overhead as part of inventory (product cost) until sold.

Option D: Indirect period costs.

Incorrect. Fixed manufacturing overhead is not expensed immediately as a period cost under absorption costing; it is capitalized into inventory and expensed as Cost of Goods Sold (COGS) when the product is sold.

Thus, the verified answer is B. Indirect product costs.