- All Exams Instant Download
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...
What is the most appropriate course of action for the CAE to take?
While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering...
Which of the following would most likely be the next step?
The internal audit activity is responsible for conducting fraud investigations. A potential fraud instance was identified during an audit engagement. The chief audit executive appoints a lead investigator. Which of the following would most likely be the next step?A . Ask internal auditors to gather all relevant information and evidence.B...
Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?
The internal audit activity is undergoing a self-assessment as part of its quality assurance and improvement program. Which of the following observations must be addressed in order for the internal audit activity to achieve conformance with the Standards?A . The internal audit charter does not identify which audit services are...
In this scenario, which of the following statements is true?
An internal auditor at a multinational organization is reviewing the effectiveness of the organization's risk management framework. In this scenario, which of the following statements is true?A . The auditor should consider local cultures and customs in various regions when assessing control effectiveness.B . Regardless of their location, employees at...
What should the CAE recommend as the most appropriate course of action for the executive?
A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization's business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior...
