The following are the roles that internal auditors that should not undertake in risk management except: Group of answer choices Setting the risk appetite Imposing risk management processes Evaluating the reporting of key risks Management assurance on risks
Q: Which of the following statements is correct concerning the understanding of internal control needed…
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A: Answer
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Q: internal audit activity's role
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Q: performing test of controls,
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26.
The following are the roles that internal auditors that should not undertake in risk management except:
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- 199.Which of the following tasks that the auditor may perform in relation to Risk Management without any reservation? Group of answer choices Facilitating identification and evaluation of risks Setting the risk appetite Giving assurance on the risk management process and provide recommendation Taking accountability for risk management12. When the auditor based on his understanding of internal control of the client concludes that the controls are ineffective or that evaluation of their effectiveness would be inefficient, then the auditor may assess control risk at the _____________ level for some or all financial statement assertions. Group of answer choices COMPLETE MAXIMUM MODERATE MEDIUM4. Which of the following are true regarding internal auditors and the adequacy of an organization’s risk management process I. Internal auditors must understand the risk assessment process and the tools used to make the assessment II. Internal auditors should determine the level of risks acceptable to the organization III. Internal auditors need to be satisfied that the key objectives of risk management processes are being met IV. Internal auditors should evaluate management’s risk processes the same way they analyze risk when planning an engagement Group of answer choices I and III only I, II, III and IV None of the choices I, II and III only I and II only
- 20. An assurance engagement of risk management processes by the internal audit activity should start by doing all of the following, except a. Identifying inherent risks and residual risks b. Gaining knowledge of the risk appetite, risk capacity, and risk tolerance c. Understanding the internal and external environment d. Proposing revision of the entity's mission, strategy, and objectives 21. Which of the following is not one of the formal components of COSO ERM Framework? a. Consider how objectives can be achieved by assessing the likelihood and probability of events that may affect the achievement of objectives b. An entity's tone at the top, ethical values, and operating style will help management establish a risk management philosophy and risk appetite c. Management must consider internal and external events that create threats and opportunities d. Risk appetite is defined and communicated as part of the entity's mission statement 24. Review or audit of…Which of the following is not a principle relating to risk assessment? a. Identifies and analyses risks and respond to changes b. Designing the information systems c. Specifies objectives with sufficient clarity d. Considers the potential for fraud in assessing risksWhich of the following are true regarding internal auditors and the adequacy of an organization’s risk management process: I. Internal auditors must understand the risk assessment process and the tools used to make the assessment II. Internal auditors should determine the level of risks acceptable to the organization III. Internal auditors need to be satisfied that the key objectives of risk management processes are being met IV. Internal auditors should evaluate management’s risk processes the same way they analyze risk when planning an engagement Choices: a. I and III only b. I and II only c. None of the choices d. I, II, III and IV e. I, II and III only
- 13. In performing test of controls, which of the following questions IS NOT the concern that needs to be answered? a. What is the relationship between the assessed level of control risk and substantive testing? b. Who is the External Auditors? c. When was the control performed? d. Who performed the control? e. Was the control consistently applied?Which of the following is appropriate about risk assessment? A. The assessed level of inherent and control risk can be sufficiently low, thus resulting to eliminating the need for substantive tests. B. Audit risk may be more effectively determined by assessing inherent and control risk separately. C. Detection risk is eliminated if an auditor were to examine 100 percent off the account balance or class of transactions. D. There is an iverse relationship between detection risk and the combined level of inherent and control riskWhich of the following risks does the auditor least control? a. inherent risk b. control risk c. detection risk d. all are equally controllable
- 39. For risk enabled and risk managed organizations, the conclusion on risk maturity is the first step in being able to provide assurance on risk management processes, management of key risks and reporting of risks. If Panda Company used the RBIA, then: Group of answer choices Agree all the risk management responses and risk management processes on which objective assurance from internal audit is required The internal audit activity's assurance strategy is therefore to provide assurance on these areas. The actions that are being taken to add, delete or modify existing responses where they do not currently bring risk within the risk appetite Produce an audit plan which lists all audits to be carried out over a specified period - usually a year.9. Which of the following is not a step that a CAE would perform in assurance mapping? a. Ensure that the internal auditors are the only source from which the board will see assurance b. Identify which of the risk management activities and residual risks fall within Kipper's risk appetite c. Identify which assurance providers are responsible for assessing the risks or control activities tied to each risk d. Provide assurance across the entire enterprise and its operations after considering the coverage by all assurance providers 10. Some companies are not mature in identifying risks that will prevent them from meeting their strategic objectives. What is not a way that ERM can help with achieving strategic objectives? a. Companies should make a list of all their risks and assign ownership to a department that can routinely monitor and manage them b. With proper internal controls, companies have reasonable assurance that risk management is working effectively, which…Recall the definition of inherent risk. Why is it important for internal auditors to focus on inherent risk during the planning phase of an assurance engagement?
