Reference no: EM133260604

Question 1.

Management has asked internal audit to review a plan for recycling that offers significant cost savings from waste management collection. A risk of the recycling scheme is exposure of customer information. What is the best way to manage this risk?

Acceptance

Pursue

Avoidance

Transfer

Question 2.

An organization's enterprise risk management (ERM) process includes internal audit activities. However, there are also roles that internal audit should not perform for fear of independence impairment. Which of the following is a role that could threaten independence?

Evaluating the reporting of key risks

Coordinating ERM activities

Imposing risk management processes

Championing establishment of ERM

Question 3.

The following are factors to consider in risk assessment matrix except

Impact

Risk weights

Likelihood

Controllability

Question 4.

Which of the following is not considered an internal inherent risk to an organization?

Competitive conditions

Complexity of activity

Complexity of function

Competency of personnel

Question 5.

What risk could result from hazards, errors and fraud to an organization?

Productivity risk

Integrity risk

Reputation risk

Process risk

Question 6.

Which of the following is an appropriate responsibility for an internal audit activity?

Coordinating with the organization's enterprise risk management

Designing and implementing an enterprise risk management (ERM) system at management's request

Designing and implementing appropriate controls after detecting control deficiencies in an assurance engagement

Reviewing the implementation of organizational policies related to risk management

Question 7.

Which of the following best describes COSO's Internal Control-Integrated Framework conclusions related to broadly defining internal control?

Assurance should not be limited to accounting controls or financial reporting

Auditors need more authority to dig deeply into side issues related to compliance violations.

Reducing fraud requires a more concentrated focus on financial reporting.

Overemphasis on vague notions of the "control environment" can lead to poorly designed financial controls.

Question 8.

Which of the following is not required during short term planning stage of audit process?

Determine and allocate audit resources

Determine the frequency of the audit

Obtain senior management approval

Schedule the audit

Question 9.

In planning an audit, the following risks need to be considered except

Audit detection risk

Reputational risk

Internal control risk

Audit procedure risk

Question 10.

What do the chief audit executive (CAE) and internal auditors need to have a clear understanding of prior to identifying and assessing significant risks to organizational objectives?

How management is likely to respond to the risks once identified

Whether to monitor risk using ongoing management activities or separate evaluations

Organization's business missions and objective

Residual risk