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Which of the following is an example of risk monitoring to ensure a system is performing as intended?
Which of the following is an example of risk monitoring to ensure a system is performing as intended?A . Checking the progress of risk treatment plans B. Considering the consequence and likelihood of risks C. Documenting the risks and their areas of impact D. Communicating to management about risksView AnswerAnswer:...
Which of the following would best help the organization manage the risk of fraud?
An organization allows the same individuals to physical access inventory and purchase new assets when supplies are depleted. Which of the following would best help the organization manage the risk of fraud?A . Accounting personnel should regularly perform reconciliation between invoices and purchase orders B. Accounting personnel should conduct a...
What would be the proper sequence of steps for an internal auditor to take in order to draw a conclusion on internal control effectiveness and adequacy after ascertaining the key controls?
What would be the proper sequence of steps for an internal auditor to take in order to draw a conclusion on internal control effectiveness and adequacy after ascertaining the key controls?A . Evaluate the adequacy of the controls and then test the controls for effectiveness. B. Test the controls for...
Which of the following best describes the risk management strategy used to address this situation?
Due to unfavorable economic conditions management decided to postpone new investments for the next year. Which of the following best describes the risk management strategy used to address this situation?A . Risk mitigation B. Risk avoidance C. Risk reduction D. Risk transferView AnswerAnswer: B
Which of the following techniques should an internal auditor use in order to conduct an effective interview?
Which of the following techniques should an internal auditor use in order to conduct an effective interview?A . Use technical language to establish credibility with the employee being interviewed B. Avoid straightforward questions to make the person being interviewed think before answering C. Prepare the next question while the interviewee...
Which of the following practices is generally most effective to protect internal audit objectivity?
Which of the following practices is generally most effective to protect internal audit objectivity?A . Ensuring regular documentation of auditor skills and experience in the workpapers. B. Basing performance evaluations heavily on customer satisfaction surveys. C. Prohibiting auditors from accepting gifts from audit clients or potential clients. D. Ensuring that...
Which of the following principles of The IIA's Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared?
Which of the following principles of The IIA's Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared?A . Confidentiality. B. Objectivity. C. Integrity. D. Competency.View AnswerAnswer: B
Which of the following can be used to minimize employees’ resentment of controls?
Which of the following can be used to minimize employees’ resentment of controls?A . Making sure employees are exempt from participating in control creation B. Implementing controls without lengthy explanations of their purpose C. Developing general constricting controls rather than detailed ones D. Not using controls to achieve goalsView AnswerAnswer:...
Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?
Which of the following is an indicator that the internal audit activity does not fully conform with the Standards?A . The quality assurance and improvement program identified several opportunities for the internal audit activity to make improvements. B. In lieu of an external assessment, the internal audit activity performed a...
Which of the following statements best represents the duo professional care that is required of internal auditor’s?
Which of the following statements best represents the duo professional care that is required of internal auditor’s?A . Internal auditors should perform assurance procedures to ensure that all significant risks are identified. B. Internal auditor should not perform consulting engagements for operations for which they had previous responsibilities. C. Internal...
