Communication

Question 1

Is the process of conveying and understanding information between one person and another

Answer 1

Communication

Question 2

An organization’s internal communications network should:

Answer 2

1) Facilitate decision making among managers,
2) Promote goal congruence among employees,
3) Integrate the efforts of all employees, and
4) Build high morale and mutual trust

Question 3

Communication can be categorized by type:

Answer 3

1) Formal communication
2) Informal communication
3) Written communication
4) Oral communication
5) Electronic communication

Question 4

Is conducted through the formal structure of the organization (e.g., budget)

Answer 4

Formal communication

Question 5

Operates outside the formal organization (the grapevine)

Answer 5

Informal communication

Question 6

Provides a permanent record of a message and tends to be accurate

Answer 6

Written communication

Question 7

Tends to be less formal and accurate but permits immediate feedback

Answer 7

Oral communication

Question 8

Provides more timely information, assists strategic planning, and optimizes organizational resources to improve productivity

Answer 8

Electronic communication

Question 9

Refers to the ability to convey information and promote learning

Answer 9

Media richness

Question 10

A rich medium has many cues:

Answer 10

1) Content
2) Tone of voice
3) Body language
4) Its personal emphasis
5) Immediate feedback

Question 11

The effectiveness of communication can be determined only

Answer 11

When the sender seeks feedback and observes the effect on the receiver

Question 12

Is the process through which someone gives meaning to the surrounding environment

Answer 12

Perception

Question 13

The following elements can cause problems in communication:

Answer 13

1) Poorly encoded/decoded messages
2) Faulty medium selection
3) Noise
4) Perceptual problems
5) Use of communication media for enhancement of personal status
6) Information loss in transmission and poor information retention
7) Nonreception
8) Formal breakdowns of communications media
9) Problems in listening

Question 14

Five principal means of electronic communication are:

Answer 14

1) Telecommuting
2) Email
3) Cell phones
4) Videoconferencing
5) Social networks

Question 15

Effective communication helps maintain good relationships between

Answer 15

Internal auditors and key stakeholders (e.g., the board of directors, audit committees, management, external auditors, and regulators).

Question 16

Good relationships are developed by

Answer 16

1) Communicating effectively
2) Resolving conflicts constructively, and
3) Using participative auditing methods

Question 17

For the internal audit activity to achieve organizational independence, the chief audit executive (CAE) must have

Answer 17

Direct and unrestricted access to senior management and the board

Question 18

The most important function of the audit committee is to

Answer 18

Promote the independence of the internal and external auditors by protecting them from management’s influence

Question 19

Internal auditors should develop and maintain good working relationships with

Answer 19

Management