IIA IIA-CIA-PART4 Exam
Certified Internal Auditor - Part 4, Business Management Skills (Page 11 )

Updated On: 12-Jan-2026

Which country is best described as having an individualistic culture?

  1. India.
  2. Japan.
  3. Canada.
  4. China.

Answer(s): C

Explanation:

Individualistic cultures are societies that place a higher value on the rights and accomplishments of individual persons within the society. Examples are the U.S., U.K, Canada, and Australia. Collectivist cultures focus much more on the goals of family, friends, country, and the organization. Examples are China, India, Mexico, Japan, and Egypt.



According to Edward T. Hall, the perception of time is monochronic or polychronic. Which cultures perceive time as monochronic?

  1. Northern European.
  2. Latin American.
  3. Arabic.
  4. Mediterranean.

Answer(s): A

Explanation:

The perception of time as it relates to business and social life varies with the culture. Polychronic time is based on a perception that time is nonlinear, flexible, and multidimensional. This perception is typical of Mediterranean, Latin American, and Arabic cultures. Monochronic time is based on a perception that time is the same for everyone and is measurable in standard units. This perception is common in Northern Europe and the U.S. These western cultures believe in punctuality and that time is money and should not be wasted.



Dutch researcher Geert Hofstede has examined the cultural dimensions of organizational behavior in 40 countries. The United States ranked the highest in which dimension?

  1. Power distance.
  2. Uncertainty avoidance.
  3. Individualism.
  4. Masculinity.

Answer(s): C

Explanation:

The individualism-collectivism dimension addresses whether the organization or individual must meet his/her own security needs.



In some regions of the world, business is conducted more often through personal relationship building than through legal contracts. This is an example of a

  1. Cultural factor.
  2. Commercial factor.
  3. Technical factor.
  4. Legal factor.

Answer(s): A

Explanation:

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 aremore highlyvalued in a high-context culture. Attitudes, tastes, behavior, and social codes are culturalfactors. Accordingly, a preference for personal relationships rather than precise writtencontracts is a cultural factor.



Edward T. Hall has distinguished between high-context and low-context cultures. Which culture is high-context?

  1. United States.
  2. Canada.
  3. Germany.
  4. Japan.

Answer(s): D

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.



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