IIA IIA-CIA-Part1 Practice Test - Questions Answers, Page 65

In a retail organization, sales teams compete with each other to achieve and exceed sales targets. Each quarter, the members of the top sales team receive a bonus. In this environment, management should closely monitor for the emergence of which of the following potential risks?

The internal audit activity conducted an organization wide risk assessment. One of the most significant risks identified is associated with the oil price market. The chief audit executive (CAE) is considering including in the annual audit plan an assessment of the effectiveness of oil price risk management. The manager responsible commented that the assessment was not needed, as market risks were regularly addressed by the financial risk committee. If the CAE decides to include this activity in the annual audit plan anyway, how should it be recorded?

Which of the following would be most helpful to measure whether an internal audit activity successfully provides risk-based assurance?

Which of the following is an indicator of ineffective third-party risk management?

Senior management is eager to assess the organization's risks with regard to electricity sales processes, but the senior management team does not know where to start. How can the internal audit activity assist?

When an organization purchases a derivative contract in the stock market to limit the potential loss in the value of a security, the organization is applying which of the following risk management techniques?

There is a growing perception that employees generally evade their responsibilities. What impact will an internal auditor most likely see during an engagement?

Which of the following should be considered in developing a risk and control model for use in an engagement?

Which of the following is a detective control?