In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
A. Identifying the processes at the activity level.
B. Analyzing the organization's strategic plan where the business processes are defined.
C. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.
D. Identifying the risks affecting the organization, the objectives, and then the processes concerned.
Which of the following statements are true regarding the use of heat maps as risk assessment tools?
1.
They focus primarily on known risks, limiting the ability to identify new risks.
2.
They rely heavily on objective assessments and related risk tolerances.
3.
They are too complex to provide an easily understandable view of key risks.
4.
They are helpful but limited in value in a rapidly changing environment.
A. 1 and 2 only
B. 1 and 4 only
C. 2 and 3 only
D. 3 and 4 only
Which of the following is an example of a risk avoidance response?
A. Buying an insurance policy to protect against loss events.
B. Hedging against natural gas price fluctuations.
C. Selling a non-strategic business unit.
D. Outsourcing a high risk process to a third party.
In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?
A. Giving assurance that risks are evaluated correctly.
B. Developing the risk management strategy for the board's approval.
C. Facilitating the identification and evaluation of risks.
D. Coaching management in responding to risk.
Which of the following would not impair the objectivity of internal auditor?
A. Management assurance on risks.
B. Implementing risk responses on behalf of management.
C. Providing assurance that risks assessed are correctly evaluated.
D. Setting the risk appetite.
According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?
1.
Every employee generally has a responsibility for ensuring the success of CSR objectives.
2.
The board has overall responsibility for the effectiveness of internal control processes associated with CSR.
3.
Public reporting on the CSR governance process is expected.
4.
Organizations generally have flexibility regarding what is included in a CSR program.
A. 1, 2, and 3 only
B. 1, 2, and 4 only
C. 1, 3, and 4 only
D. 2, 3, and 4 only
Within an enterprise, IT governance relates to the:
1.
Alignment between the enterprise's IT long term plan and the organization's objectives.
2.
Organizational structures of the company that are designed to ensure that IT supports the organization's strategies and objectives.
3.
Operational plans established to support the IT strategies and objectives.
4.
Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.
A. 1 and 2 only
B. 3 and 4 only
C. 1, 2, and 4 only
D. 2, 3, and 4 only
What are the objectives of governance as defined by the Standards?
A. Inform, direct, manage, and monitor.
B. Identify, assess, manage, and control.
C. Organize, assign, authorize, and implement.
D. Add value, improve, assure, and conform.
An internal auditor is trying to assess control risk and the effectiveness of an organization's internal
controls.
Which of the following audit procedures would not provide assurance to the auditor on this matter?
A. Interviewing the organization's employees.
B. Observing the organization's operations.
C. Reading the board's minutes.
D. Inspecting manuals and documents.
Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?
A. The internal auditor may cite the use of other standards during audit communications.
B. If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.
C. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.
D. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.
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