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Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?
Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?A . Evaluate how the organization manages fraud risk. B. Establish procedures for improving risk management processes. C. Ensure risk responses are aligned with industry standards. D. Verify...
Which of the following best demonstrates that the internal audit activity is using due professional care?
Which of the following best demonstrates that the internal audit activity is using due professional care?A . The internal audit activity reports directly to the board on the engagements it performs. B. Internal auditors undertake the necessary training to complete their audit work. C. The completion of engagements is based...
Senior management has decided to adopt the key principles approach of the ISO 31000 risk management framework. According to IIA guidance, which of the following principles is most appropriate when implementing the risk management process in a dynamic agency?
Senior management has decided to adopt the key principles approach of the ISO 31000 risk management framework. According to IIA guidance, which of the following principles is most appropriate when implementing the risk management process in a dynamic agency?A . Everyone in the agency has a primary responsibility for identifying...
Which of the following would be considered a monitoring activity in organization wide risk management?
Which of the following would be considered a monitoring activity in organization wide risk management?A . Validate the results of management's self-assessment. B. Perform reviews of personnel. C. Maintain rigorous and comprehensive documentation. D. Obtain authorizations and signatures.View AnswerAnswer: A
In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?
In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?A . The CAE previously undertook a consulting assignment in that area to improve processes, B. A couple of years ago, the CAE performed accounting functions for the payroll...
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
