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4.
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- 22. An internal auditor is conducting an evaluation of significant risks that could keep the organization from achieving its objectives Which of the following are potential techniques used by the internal auditor to identify significant risks? I. The internal auditor compiles a listing of the most common risks facing the company II. The internal auditor consults with an outside expert to get an opinion on the marketability of a new product III. The internal auditor conducts interviews and surveys management on potential risks IV. The internal auditor puts on a workshop for key managers on identifying risks Group of answer choices I, II, III and IV II, III and IV only I, II and III only None of the choices I and II only50. The following are challenges faced by organization in risk management, except Group of answer choices Top management may tend to be focused on achieving their goals to the extent of being blind to the unanticipated consequences of their policies Multiple simultaneous risks materializing None of the choices The extra risks of less democratic organizations Organizations being too risk-averse28. Which of the following is the root cause of risk? Group of answer choices Customer dissatisfaction Loss of assets None of the choices Erroneous decisions Erroneous decisions
- 21. In performing effective risk assessment, organizations should: Group of answer choices None of the choices Identify and analyze risks to the achievement of its objectives to determine how they may be planned Consider potential fraud relating to the achievement of objectives Clearly specify objectives to allow the identification and assessment of risks related to the controls Identify and implement changes that could impact risk and internal control8. Which of the following best describes the internal audit activity's role in supporting the board in enterprise-wide risk assessment? Group of answer choices Examine evaluate, report on, and recommend improvements on the adequacy and effectiveness of risk processes Oversee risk management processes to determine whether they are adequate and effective None of the choices Ensure that sound risk management processes are in place and functioning Implement risk management methodologies and controls to address risks identified9. 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…
- 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.30. 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, II and III only None of the choices I, II, III and IV I and III only I and II onlyWhat business risks does Toll Brothers face that may threaten the company’s ability tosatisfy stockholder expectations? What are some examples of control activities that thecompany could use to reduce these risks? (Hint: Focus on pages 10–11 of the 10-K.)
- $1. The assessed level of control risk can be expressed in quantitative or non-quantitative terms.S2: During the understanding of the internal control structure, the auditor is not required to evaluate the operating effectiveness of the control policies and procedures.$3: For a small business that has a simple internal control structure, a written narrative maysuffice but for a large entity that have complex control structures, a combination of the three methods may be considered appropriate. A: Ifall statements are correct.B-If only one statement is correct.C- If only two statements are correct.D- If all statements are incorrect.4 Which of the following is true about the Sarbanes-Oxley Act?A. It was passed to ensure that internal controls are properly documented and tested by publiccompanies.B. It applies to both public and smaller companies.C. It requires all companies to report their internal control policies to the US Securities and ExchangeCommission.D. It does not require additional costs or resources to have adequate controls.8. COSO has an exposure draft for five risk component. Which of the following also relates to Internal Control System’s Control Environment? Group of answer choices Monitoring Enterprise Risk Management Performance Risk Information, Communication, and Reporting Risk, Strategy, and Objective Setting None of the choices Risk Governance and Culture