CIA PART 3 FINAL REVIEW EXAM.FINAL TEST 2026\2027.
2 major components of Governance
strategic direction
oversight
ISO 14000
Environmental Management
ISO 9000
Quality Management
ISO 26000
Social Responsibility
Risk Management
a process to identify, assess, manage, and control potential events or situations to provide
reasonable assurance regarding the achievement of the organizations objectives.
Risk Management Process
1) risk identification
2) risk assessment and prioritization
3) risk response
4) risk monitoring
Enterprise Risk Management
a process effected by an entity's board of directors, management, and other personnel,
applied in strategy setting and across the enterprise, designed to identify potential events
that may affect the entity, and manage risk to be within its risk appetite, to provide
reasonable assurance regarding the achievement of entity objectives.
ERM Components
1) internal environment
2) objective setting
3) event identification
4) risk assessment
5) risk responses
,CIA PART 3 FINAL REVIEW EXAM.FINAL TEST 2026\2027.
6)control activities
7) information and communication
8) monitoring
ISO 31000
Risk Management
Turnbull
approach to ERM - internal control framework with an emphasis on internal control, the
assessment of its effectiveness, and risk analysis.
Basic Approaches to Organizational Design
1) traditional or classical approach
2) behavioral approach
3) contingency approach
Unity of Objective
The structure of every organization should facilitate the achievement of its objectives.
Mechanistic Structure
has 1) tight controls, 2) extensive division of labor, 3) high formalization, and 4)
centralization.The information network is limited, and employees rarely participate in
decision making.
-most likely to succeed in stable and certain environments.
Organic Structure
decentralized and has low complexity and formalization. Has an extensive information
system, and employees participate in decision making. It tends to be flexible and adaptive.
-most likely to succeed in unstable and uncertain environments because it is adaptive.
Henry Mintzberg - 5 basic parts to an organization
1) operating core (workers who perform the basic tasks related to production)
2) strategic apex (top managers)
3) middle line (managers who connect the core to the apex)
4) technostructure (analysts who achieve a certain standardization)
5) support staff (indirect support services)
Hnery Mintzberg - 5 structures of an organization
, CIA PART 3 FINAL REVIEW EXAM.FINAL TEST 2026\2027.
1) simple structure (entrepreneurial)
2) machine bureaucracy
3) professional bureaucracy
4) divisional structure
5) adhocracy (organic structure)
Price elasticity of demand
used to measure the responsiveness of the quantity demanded of a product to a change in
its price.
= (change in quantity / Quantity) / (Change in price / price)
Supply Chain consists of flows from sources of
1) raw materials
2) components
3) finished goods
4) services
5) information through intermediaries to ultimate consumers
Queuing theory
a form of workflow analysis. An organization can improve throughput by carefully designing
the way inputs arrive at workstations and how they are processed upon arrival.
Linear Programming
optimizes a function subject to certain constraints.
the objective is to choose the best solution from a potentially infinite number of possibilities.
Theory of Constraints
improves operating income when a manufacturing process has one or more bottleneck
operations.
- improvement is best achieved not by trying to maximize efficiency in every part of the
process but by focusing on the bottlenecks.
Throughput margin
includes only direct materials costs as variable costs. All other manufacturing costs are
ignored because they are considered fixed in the short run.
2 major components of Governance
strategic direction
oversight
ISO 14000
Environmental Management
ISO 9000
Quality Management
ISO 26000
Social Responsibility
Risk Management
a process to identify, assess, manage, and control potential events or situations to provide
reasonable assurance regarding the achievement of the organizations objectives.
Risk Management Process
1) risk identification
2) risk assessment and prioritization
3) risk response
4) risk monitoring
Enterprise Risk Management
a process effected by an entity's board of directors, management, and other personnel,
applied in strategy setting and across the enterprise, designed to identify potential events
that may affect the entity, and manage risk to be within its risk appetite, to provide
reasonable assurance regarding the achievement of entity objectives.
ERM Components
1) internal environment
2) objective setting
3) event identification
4) risk assessment
5) risk responses
,CIA PART 3 FINAL REVIEW EXAM.FINAL TEST 2026\2027.
6)control activities
7) information and communication
8) monitoring
ISO 31000
Risk Management
Turnbull
approach to ERM - internal control framework with an emphasis on internal control, the
assessment of its effectiveness, and risk analysis.
Basic Approaches to Organizational Design
1) traditional or classical approach
2) behavioral approach
3) contingency approach
Unity of Objective
The structure of every organization should facilitate the achievement of its objectives.
Mechanistic Structure
has 1) tight controls, 2) extensive division of labor, 3) high formalization, and 4)
centralization.The information network is limited, and employees rarely participate in
decision making.
-most likely to succeed in stable and certain environments.
Organic Structure
decentralized and has low complexity and formalization. Has an extensive information
system, and employees participate in decision making. It tends to be flexible and adaptive.
-most likely to succeed in unstable and uncertain environments because it is adaptive.
Henry Mintzberg - 5 basic parts to an organization
1) operating core (workers who perform the basic tasks related to production)
2) strategic apex (top managers)
3) middle line (managers who connect the core to the apex)
4) technostructure (analysts who achieve a certain standardization)
5) support staff (indirect support services)
Hnery Mintzberg - 5 structures of an organization
, CIA PART 3 FINAL REVIEW EXAM.FINAL TEST 2026\2027.
1) simple structure (entrepreneurial)
2) machine bureaucracy
3) professional bureaucracy
4) divisional structure
5) adhocracy (organic structure)
Price elasticity of demand
used to measure the responsiveness of the quantity demanded of a product to a change in
its price.
= (change in quantity / Quantity) / (Change in price / price)
Supply Chain consists of flows from sources of
1) raw materials
2) components
3) finished goods
4) services
5) information through intermediaries to ultimate consumers
Queuing theory
a form of workflow analysis. An organization can improve throughput by carefully designing
the way inputs arrive at workstations and how they are processed upon arrival.
Linear Programming
optimizes a function subject to certain constraints.
the objective is to choose the best solution from a potentially infinite number of possibilities.
Theory of Constraints
improves operating income when a manufacturing process has one or more bottleneck
operations.
- improvement is best achieved not by trying to maximize efficiency in every part of the
process but by focusing on the bottlenecks.
Throughput margin
includes only direct materials costs as variable costs. All other manufacturing costs are
ignored because they are considered fixed in the short run.
