IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 64
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Which of the following best describes a proactive role for the internal audit activity with regard to the organization's ethics program?
Becoming a voting member of the organization's internal ethics council.
Performing an annual organizationwide employee survey.
Reviewing all departmental ethics-related policies.
Conducting annual ethics training for all employees.
Which of the following best illustrates the principle of due professional care?
The internal audit activity uses key performance indicators for all staff members after all audit engagements.
The internal auditors provide assurance to third parties indicating that their work was properly supervised.
The internal auditors demonstrate they have an understanding of engagement objectives and scope.
The internal auditors are heavily involved in training and development to enhance their skills.
An internal auditor is trying to evaluate what could go wrong after determining that a risk management technique is operating effectively. What type of risk is the auditor assessing?
Inherent risk.
Residual risk.
Impact risk.
Detection risk.
Which of the following is ultimately responsible for the continuing professional development of internal audit activity staff?
Individual internal auditors.
Chief audit executive.
Board of directors.
CEO.
Regarding the chief audit executive (CAE). which ot the following is considered an impairment to the independence of the internal audit activity?
The CAE reports administratively to the CEO.
The CAE is asked to submit the liquidation of her travel allowances to human resources for approval.
The CAE's supervisor is responsible for the risk management function.
The CAE is asked to review new procedures before implementation.
What is the main difference between a consulting engagement versus an assurance engagement?
The nature of services provided are defined in the internal audit charter.
Internal auditors must maintain objectivity while performing their work.
The objectives and scope of the engagement typically are directed by management.
Internal auditors may assume management responsibilities.
The chief audit executive (CAE) annually develops a budget and resource plan and submits it to the board for approval. This action best fulfills which of the following responsibilities of the CAE?
The responsibility to maintain organizational independence.
The responsibility to perform engagements with due professional care.
The responsibility to communicate corrective action plans to the board.
The responsibility to define the purpose of the internal audit activity.
A financial services organization's board is assessing increased regulations and its effect on current industry lending practices. Which of the following committees would help the board identify and assess the effects of the increased regulations?
Quality committee.
Audit committee.
Risk committee.
Governance committee.
Which of the following describes the primary objective when implementing a risk management framework?
To achieve planned profitability for business expansion.
To enhance an organization's confidence in achieving strategy.
To strengthen corporate governance standards.
To eliminate business risks and uncertainties.
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
The scope and frequency of both internal and external quality assessments.
The list of audit engagements that will be assessed during the year.
The number and qualifications of internal audit staff members assigned to perform internal assessments during the year.
The compensation structure of the qualified assessment team.
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