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Which of the following statements best describes the difference between risk appetite and risk tolerance?
Which of the following statements best describes the difference between risk appetite and risk tolerance?A . Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk,B . Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance...
Which of the following statements best demonstrates application of due professional care during an assurance engagement?
Which of the following statements best demonstrates application of due professional care during an assurance engagement?A . The engagement detected irregularities and noncompliance instances.B . The engagement supervisor had no significant comments in the supervisory review.C . The audit procedures were systematically planned, executed, and documented.D . The engagement objectives...
According to IIA guidance, which of the following statements is true regarding due professional care?
According to IIA guidance, which of the following statements is true regarding due professional care?A . Internal auditors must exercise due professional care to Insure that all significant risks will be identified,B . Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditorC...
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 Explanation: The Global...
The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?
The internal audit activity completed its analysis of sample transactions to determine occurrences of double billings According to If A guidance, which of the following best demonstrates that internal auditors exercised due professional care during the review?A . Internal auditors found no instances of double billing and concluded there were...
According to the 11A Code of Ethics, which of the following is required with regard to communicating results?
According to the 11A Code of Ethics, which of the following is required with regard to communicating results?A . The internal auditor should present material information to appropriate personnel within the organization without revealing confidential matters that could be detrimental to the organization.B . The internal auditor should disclose all...
Which of the following types of controls should she examine?
An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping* She wonders whether they can also modify orders after shipping. Which of the following types of controls should she examine?A . Batch controls.B . Application controls.C . General IT...
Applying ISO 31000, which of the following is part of the external context for risk management?
Applying ISO 31000, which of the following is part of the external context for risk management?A . Risk treatment method based on risk evaluation.B . Organizational culture, objectives, and processes.C . The regulatory and competitive environmentD . The method of determining the risk level.View AnswerAnswer: C Explanation: ISO 31000 outlines...
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?
According to NA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?A . CAE reviews and approves the annual audit plan,B . CAE meets privately with the CEO at least annually.C . CAE meets privately with the...
Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?
Which of the following best describes the Standards requirement for collective proficiency of the internal audit activity?A . The internal audit activity must have auditors on staff who collectively possess all of the competencies required to fulfill the internal audit plan,B . All internal auditors on staff should possess the...
