IIA IIA-CIA-Part1 Quiz 27 Topic 4 Questions 131-135

Question: 1

Which of the following are components of the ISO 31000 risk management process?

1. Setting the context.

2. Risk treatment.

3. Risk avoidance.

4. Communication.

A1 and 2 only.

B2 and 3.

C3 and 4.

D1,2, and 4.

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Question: 2

What should the internal auditor's role be in assessing the organization's ethical climate?

APerform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate.

BEvaluate the effectiveness of the organization's strategies and B. processes for achieving the desired level of legal and ethical compliance.

CMaintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.

DPerform background checks of potential new employees before they are hired by the organization.

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Question: 3

An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

AAsk management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

BAsk appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

CAsk the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

DAsk The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

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Question: 4

What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

ADuring facilitated workshops, people more openly say things to internal auditors than during private interviews.

BInternal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.

CFacilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

DThe testimonial evidence obtained during facilitated workshops is generally considered more reliable.

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Question: 5

The security department uncovered what appears to be a complex fraud in the accounting department. The CEO has requested the internal audit activity to investigate the fraud. If the internal audit staff lacks the expertise to conduct the investigation, how should the chief audit executive proceed?

ADisclose the deficiency, and request that the investigation be reassigned to the first line of defense.

BProceed with the investigation, as internal auditors are not required to have fraud expertise.

COutsource the sensitive investigation to a third-party consultant with fraud expertise.

DSelect a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.

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IIA IIA-CIA-Part1 Quiz:27 Topic:4 Questions:131-135