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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 mitigationB . Risk avoidanceC . Risk reductionD . Risk transferView AnswerAnswer: B
According to IIA guidance, which of the following statements is true regarding consulting engagements performed by the internal audit activity?
According to IIA guidance, which of the following statements is true regarding consulting engagements performed by the internal audit activity?A . Consulting engagements typically involve four or five parties: the internal audit activity, engagement client, senior management, board, and sometimes the external auditor.B . The scope of a consulting engagement...
Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?
Which of the following would a chief audit executive most likely use to identify a need for improvement in a staff internal auditor's business acumen?A . A quality assessment review.B . An internal audit client survey.C . A control self-assessment.D . A peer review of the internal audit activity.View AnswerAnswer:...
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?A . An independent third party has assessed the organization's system of internal controls to be adequate and effective. B. The chief audit executive reports both functionally and administratively to the CEO. C. The...
Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?
Which of the following describes a primary responsibility for the internal audit activity in helping management maintain effective controls?A . Promoting continuous evaluation B. Promoting continuous monitoring C. Promoting continuous improvement D. Promoting continuous reportingView AnswerAnswer: A
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?
According to HA guidance, which of the following is true regarding independence and objectivity for small internal audit activities?A . The chief audit executive (CAE) may consider including a disclaimer on independence in audit reports. B. The CAE may consider greater involvement of those with suitable knowledge of audit practice....
Given this situation, which skills or competencies should this internal auditor seek to improve?
During an audit of company expenses, the internal auditor performed a test using data analytics and identified a violation of the company's expenses policy. The auditor who discovered the issue considered it a potential fraudulent transaction and informed the chief financial officer (CFO). The CFO dismissed the concern because he...
Which of the following items related to the quality assurance and improvement program should the chief audit executive report to the board?
Which of the following items related to the quality assurance and improvement program should the chief audit executive report to the board?A . Ongoing monitoring results B. Periodic management assessment results C. Annual risk assessment results D. Internal auditors' training evaluation resultsView AnswerAnswer: C
Which of the described findings requires more consideration from a fraud risk perspective?
An internal auditor notes that inventory counts are conducted on Mondays only and that all documentation is on paper as there are no computers in the underground warehouses. Also she notices that the person responsible for receiving the goods is the same one who distributes materials and spare parts Finally,...
According to the Standards, in today's technology and business environments, how much computer and information systems-related knowledge and skills must an internal auditor have to be effective in fulfilling his job responsibilities?
According to the Standards, in today's technology and business environments, how much computer and information systems-related knowledge and skills must an internal auditor have to be effective in fulfilling his job responsibilities?A . Auditors must have an IT specialty in at least one of their organization's key information technology systems....
