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Exam IIA-CIA-Part3 topic 2 question 309 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 309
Topic #: 2
[All IIA-CIA-Part3 Questions]

When executive compensation is based on the organization's financial results, which of the following situations is most likely to arise?

  • A. The organization reports inappropriate estimates and accruals due to poor accounting controls.
  • B. The organization uses an unreliable process for gathering and reporting executive compensation data.
  • C. The organization experiences increasing discontent of employees, if executives are eligible for compensation amounts that are deemed unreasonable.
  • D. The organization encourages employee behavior that is inconsistent with the interests of relevant stakeholders.
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Suggested Answer: C 🗳️
by KonradK at Jan. 24, 2024, 1:14 p.m.

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emtofid
3 weeks, 5 days ago
Selected Answer: D
executives might focus excessively on short-term financial performance to boost their compensation, potentially leading to decisions that are not in the best long-term interests of stakeholders, such as employees, customers, and shareholders.
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KonradK
7 months, 2 weeks ago
Could someone give insight on this?
upvoted 2 times
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