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Which of the following best describes this type of risk?
A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annual snowfall for the coming winter. Which of the following best describes this type of risk?A . Residual. B. Net. C. Inherent. D. Accepted.View AnswerAnswer: C
Which of the following justifies inclusion of this clause in the reports?
An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments. The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International! Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies...
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
Which of the following must be in existence as a precondition to developing an effective system of internal controls?A . A monitoring process, B. A risk assessment process. C. A strategic objective-setting process. D. An information and communication process.View AnswerAnswer: B
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?A . ISO 26000. B. Global Reporting Initiative. C. Open Compliance and Ethics Group. D. COSO’s enterprise risk management frameworkView AnswerAnswer: B
Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.
Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.A . 1 and 2 only. B. 2 and 3 only. C. 2 and 4 only. D. 3 and 4 onlyView AnswerAnswer: A
Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s
Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization’s records. 4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.A . 1 and 3.B. B. 1 and 4. C. 2 and 3. D....
Which of the following best describes the internal audit activity’s responsibility within a risk and control framework?
Which of the following best describes the internal audit activity’s responsibility within a risk and control framework?A . The internal audit activity constitutes the first line of defense in effective risk management. B. The internal audit activity provides direction regarding internal controls implementation. C. The internal audit activity verifies that...
Which of the following would encourage the internal auditor to be objective in his work?
During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?A . Periodic reinforcement of the internal audit...
Which of the following processes does the board manage to ensure adequate governance?
Which of the following processes does the board manage to ensure adequate governance?A . Establish and measure performance objectives for the internal audit activity. B. Select board members with necessary knowledge and skills. C. Develop, approve, and execute the strategic plan of the organization. D. Develop strategies to mitigate the...
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?
According to IIA guidance, which of the following statements is true regarding reporting the results of the quality assurance and improvement program?A . Results of internal assessments need to be reported to the board at least once every five years. B. The external assessor must present the findings from the...
