IIA IIA-CIA-Part1 Quiz 107 Topic 10 Questions 531-535

Question: 1

A quantitative risk assessment model has all of the following advantages except:

AAccommodating a large number of risk factors in the assessment.

BProviding documentation for the chief audit executive, who must defend the long-range audit plan.

CProviding a systematic method of applying weightings to risks and priorities.

DRemoving the need for judgment on the part of the chief audit executive.

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Question: 2

Continuing Professional Education (CPE) hours for Certified Internal Auditors may be achieved by:

AAttending audit staff meetings.

BVerifying that all completed audit tests are fully documented.

CPublishing an article on the company's internal audit department.

DObtaining experience on the job.

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Question: 3

In a manufacturing company, which department would be the internal audit activity's most reliable source of information on the controls over minimizing defective goods?

AManufacturing.

BQuality control.

CResearch and development.

DInventory management.

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Question: 4

Internal auditors who are concerned with potential risks due to the mishandling of records or transactions should take into consideration:

AThe type and nature of the activities to be examined.

BWhether employees in key positions of trust are bonded.

CThe history of losses suffered by the company.

DThe results of prior risk assessments.

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Question: 5

Which of the following is true with respect to the risk assessment process?

AThe ethical climate should not be included since this factor cannot be measured quantitatively.

BMore than one risk factor may have to be used to ensure that the risk assessment is comprehensive.

CEach risk factor should be given equal weighting in order to reduce the opportunity for bias.

DThe risk assessment process should be conducted at least every three years.

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IIA IIA-CIA-Part1 Quiz:107 Topic:10 Questions:531-535