IIA IIA-CIA-Part1 Quiz 99 Topic 3 Questions 491-495

Question: 1

According to the International Professional Practices Framework, a primary purpose of evaluating the adequacy of an organization's risk management, control, and governance processes is to determine if it:

AWas designed to ensure compliance with policies, plans, procedures, laws, and regulations.

BProvides reasonable assurance that the organization's objectives will be met.

CMitigates inherent risk.

DAssures the reliability and integrity of information used by management.

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Question: 2

Which of the following statements, if true, could justify an auditor's decision not to report governance-related control deficiencies to the audit committee?

AManagement plans to initiate corrective action.

BThe board of directors has a separate corporate governance committee.

CThe amounts and the potential risks associated with the deficiencies are not material to the overall organization.

DGovernance issues are complex and the auditor should rely on management's analysis of the extent of the problem.

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Question: 3

The primary role of the internal audit activity in regard to an organization's ethical climate is to:

AParticipate as chief ethics officer.

BPeriodically assess the ethical climate.

CUtilize surveys to evaluate employee ethics.

DDemonstrate ethical behavior.

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Question: 4

A chief audit executive (CAE) is obtaining information required by a regulatory oversight body and discovers a situation that requires management to take immediate corrective action. What is the best course of action for the CAE to take?

AWait until all of the information has been gathered and reported to the oversight body before reporting the situation to management.

BCheck with legal counsel to determine whether the situation can be reported to management before all information has been submitted to the oversight body.

CReport the situation to management immediately.

DSchedule an engagement to explore the situation in depth, before reporting to either management or the oversight body.

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Question: 5

Which of the following is the most important limitation on the effectiveness of audit committees?

AAudit committees may be composed of independent directors; however, those directors may have close personal and professional friendships with management.

BAudit committee members are compensated by the organization and thus favor a stockholder view.

CAudit committees devote most of their efforts to external audit concerns and do not pay much attention to internal auditing and the overall control environment.

DAudit committee members do not normally have degrees in the accounting or auditing fields.

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IIA IIA-CIA-Part1 Quiz:99 Topic:3 Questions:491-495