IIA IIA-CIA-Part1 Quiz 71 Topic 10 Questions 351-355

Question: 1

According to the COSO Enterprise Risk Management - Integrated Framework, which of the following statements is true regarding the role of risk appetite in an organization?

ARisk appetite reflects the organization's risk philosophy and influences its operating style.

BA high risk appetite may limit capital investment in high risk areas.

CRisk appetite is determined in part by how an entity allocates its resources.

DRisk appetite is often best measured in the same units as its related objective.

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Question: 2

Which domain of the COBIT framework addresses the maintenance and change management of existing systems to ensure alignment with business needs and objectives?

APlan and organize.

BDeliver and support.

CMonitor and evaluate.

DAcquire and implement.

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Question: 3

According to IIA guidance, which of the following risk management process evaluation findings would the internal audit activity consider most effective?

ARelevant risk information is captured and communicated in a periodic manner to management.

BRisk management processes are monitored through an annual assessment.

CRisk responses align with the organization's risk appetite.

DStrategic risks with low residual values are continuously monitored.

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Question: 4

An employee is more likely to commit fraud if which of the following red flags are present?

1. The employee believes that he is being underpaid and deserves a higher salary.

2. The employee is close to retirement and has expressed a desire to take an expensive trip around the world.

3. The employee has personal financial problems and seems very unhappy.

4. The employee is spending much more time at the office than usual and has been asking about opportunities for professional advancement.

A1 and 2 only

B1 and 3 only

C3 and 4 only

D2 and 4 only

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Question: 5

A senior manager asks the chief audit executive (CAE) to explain why statistical sampling is the best method to use in conducting an internal audit. Which advantages should the CAE point to in order to justify the internal audit activity's (IAA) use of statistical sampling?

AStatistical sampling sets limits on resources used for the IAA, allows for a subjective interpretation of the IAA's sampling results, and supports The Institute of Internal Auditors' requirements for using questionnaires as a sampling tool.

BStatistical sampling allows for evaluation of all organizational data at once, increases the likelihood that risks are immediately identified, and does not require a level of tolerable misstatement or margin of error.

CStatistical sampling allows for the selection of a minimum sample size, provides a quantitative expression of the IAA's sampling results, and supports extrapolation.

DStatistical sampling itself identifies root causes of issues, utilizes a qualitative method for analyzing results, and supports engagement objectives through the use of external benchmarking.

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IIA IIA-CIA-Part1 Quiz:71 Topic:10 Questions:351-355