IIA IIA-CIA-Part1 Quiz 110 Topic 9 Questions 546-550

Question: 1

To enhance the independence of both the internal and external audit functions, audit committees should be composed of:

AA rotating subcommittee of the board of directors or its equivalent.

BA combination of external members of the board of directors and company officers.

CMembers from all important constituencies, specifically including representatives from banking, labor, regulatory agencies, shareholders, and officers.

DOnly external members of the board of directors or other similar oversight committees.

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Question: 2

Which of the following is not true with regard to the internal audit charter?

AIt defines the authorities and responsibilities of the internal audit activity.

BIt specifies the minimum resources needed for the internal audit activity.

CIt provides a basis for evaluating the internal audit activity.

DIt should be approved by senior management and the board.

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Question: 3

The primary objective of risk-based auditing is to assess the:

AEconomy of controls.

BCompliance with controls.

CAdequacy of controls.

DEfficiency of controls.

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Question: 4

Which of the following would be most relevant regarding the internal control environment?

AAssessing controls over computerized applications.

BDocumenting the organizational structure.

CComparing and validating internal performance with external benchmarking.

DMaintaining and reviewing detailed financial records.

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Question: 5

Due to urgent requests from management, a busy internal audit activity finds that it can no longer meet all of its commitments contained in the annual audit plan. The best course of action for the chief audit executive to take would be to:

AContinue with the plan and seek opportunities to adjust priorities and reallocate resources.

BAdvise senior management and request that they reconsider these additional requests using more rigorous risk assessment and prioritization factors.

CAdvise the board and senior management and request a reassessment of the plan.

DAdvise the board immediately and seek their support for additional resources to meet the needs of the plan.

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IIA IIA-CIA-Part1 Quiz:110 Topic:9 Questions:546-550