Exam IIA-CIA-Part1: Certified Internal Auditor – Part 1, The Internal Audit Activity’s – Role in Governance, Risk, and Control

Some new questions:
Q
Which of the following is the internal audit activity expected to do with respect to the organization’s governance processes?
A. Formally audit all governance activities.
B. Provide strategic guidance on the organizational processes to senior management.
C. Achieve agreement with the board regarding the range of activities, depth of review, and time period to include in the assessment.
D. Audit against the governance structures and practices widely used in the industry.

Q
Which of the following practices, applied by the chief audit executive {CAE), most likely indicates an effective continuing professional educational program for the internal audit activity?
A. The CAE tasks internal auditors with coordinating assurance activities with other providers across the organization.
B. The CAE encourages auditors to volunteer to support research work of the local professional institute.
C. The CAE requires auditors to periodically attest to the profession’s Code of Ethics.
D. The CAE reminds auditors to ensure workpapers are completed for audit engagements.

Q
A risk assessment showed that the cost of addressing a particular risk in the organization’s human resources department is greater than the perceived benefit. Which risk response approach should the organization take in this scenario?
A. Reduce the risk.
B. Transfer the risk.
C. Accept the risk.
D. Share the risk.

Q
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
A. Encourage the auditor to continue this practice, as it demonstrates objectivity.
B. Encourage the auditor to improve communication skills.
C. Encourage the auditor to conduct post-engagement surveys to obtain the audit client’s position on the issues raised.
D. Encourage the auditor to sign the draft reports before submitting them.

Q
Instead of leaving its capital in a bank account with a low guaranteed interest rate, an organization’s board approved a proposal to invest in a stock that could have a high expected return rate without taking any risk mitigation activities. Which risk concept does this decision illustrate?
A. Risk appetite.
B. Risk capacity.
C. Risk tolerance.
D. Risk retention.

Q
Which of the following statements describes the activities performed by the internal audit activity to fulfill the Mission of Internal Audit?
A. Conduct reviews of internal risk and controls.
B. Conduct fraud investigations on suspicious deals.
C. Perform risk management functions in selected areas.
D. Establish the risk appetite of the organization.

Q
Which of the following preventive controls would be most effective for organizations facing business disruptions and respective financial losses?
A. Develop a business continuity plan for contingent situations.
B. Insure the organization against financial losses.
C. Rely on third-party cloud solution providers for the organization’s systems.
D. Hedge company assets via purchasing derivatives.

Q
Which aspect of an internal audit charter relates to the reporting structure for the internal audit activity?
A. Objectivity.
B. Responsibility.
C. Organization.
D. Authority.
……….