IIA IIA-CIA-Part2 Quiz 56 Topic 1 Questions 276-280

Question: 1

Which of the following statements is correct regarding the assessment of risk in the annual audit planning process?

1. Activities requested by management should be considered higher risk than those requested by the audit committee.

2. Activities with lower budgets can be as high risk as those with higher budgets.

3. The potential financial or adverse exposure should always be considered in the assessment of risk.

A1 only

B2 only

C3 only

D2 and 3 only

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Question: 2

An internal audit manager is supervising an engagement. A senior auditor deviates from the approved engagement plan but meets all deadlines in the approved time schedule. Which activity is not required for the audit manager to provide proper engagement supervision?

AActively participate in audit procedures.

BEnsure that all engagement objectives are met.

CApprove the deviation from the engagement plan.

DEnsure compliance with the time schedule.

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Question: 3

Why should internal auditors develop a strong relationship with the external auditors?

AExternal auditors offer an additional layer of approval to internal auditors' reports.

BExternal auditors can help improve the effectiveness of internal control sampling techniques.

CExternal auditors can offer an independent and knowledgeable viewpoint.

DExternal auditors can share information gained from work with similar clients.

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Question: 4

An internal auditor is planning an assurance engagement. The auditor first reviews the department's business objectives. What is the next step?

AReview control activities.

BEvaluate potential risks.

CEstablish risk management roles.

DSet the scope of the engagement.

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Question: 5

Which characteristic of risk assessment makes it a useful tool for audit planning?

AIt provides a list of auditable activities in the organization.

BIt ranks the severity of potentially adverse effects on the organization.

CIt provides a process for identifying and analyzing potentially adverse effects.

DIt evaluates the probability that an event or action may adversely affect the organization.

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IIA IIA-CIA-Part2 Quiz:56 Topic:1 Questions:276-280