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With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?A . Obtaining assurance on external financial, regulatory, and internal audits.B . Complying with laws, regulations, and codes.C . Assigning authority and responsibilities organization wide.D . Monitoring and measuring performance.View AnswerAnswer: A
Which of the following would be the most effective preventative control to reduce these losses?
During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids. Which of the following would be the most effective preventative control to reduce these losses?A . Ensure that returned merchandise is...
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 resultsB . Periodic management assessment resultsC . Annual risk assessment resultsD . Internal auditors' training evaluation resultsView AnswerAnswer: C
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.C...
What type of controls would the auditor likely recommend to management to specifically address this problem?
The internal auditor of a small manufacturer noted that the accounting department has insufficient staff to achieve proper segregation of duties. What type of controls would the auditor likely recommend to management to specifically address this problem?A . Entity-level.B . Preventive.C . Directive.D . Compensating.View AnswerAnswer: D
Internal controls belong to which risk response category?
Internal controls belong to which risk response category?A . Reduction.B . Avoidance.C . Sharing.D . Acceptance.View AnswerAnswer: A
What is the best course of action when the internal audit activity does not have the knowledge necessary to perform a planned audit of the organization's new IT data backup process?
What is the best course of action when the internal audit activity does not have the knowledge necessary to perform a planned audit of the organization's new IT data backup process?A . Postpone the audit engagement to a later date.B . Recruit and hire a full-time staff auditor who is...
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 risk management techniques best describes the strategy of obtaining insurance to protect against losses due to bad weather conditions?
Which of the following risk management techniques best describes the strategy of obtaining insurance to protect against losses due to bad weather conditions?A . Risk avoidanceB . Risk reductionC . Risk acceptanceD . Risk sharingView AnswerAnswer: D
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 ordersB . Accounting personnel should conduct a...
