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NEW QUESTION 45
According to ISO 31000, which of the following statements is correct?

A. The framework is designed to be effective for organizations no matter how small.B. The board is responsible for setting the organizational attitude through tone at the top,C. The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.D. The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities,

Answer: A

 

NEW QUESTION 46
To identify those components of a telecommunications system that present the greatest risk, an internal auditor should first:

A. Map the network software and hardware products into their respective layers.B. Determine the business purpose of the network.C. Review the open systems interconnect network model.D. Identify the network operating costs.

Answer: B

Explanation:
Section: Volume A

 

NEW QUESTION 47
Which of the following conditions is the most likely indicator of fraud?

A. Lower earnings occur during the industry's down cycle.B. A manager regularly assumes subordinates' duties.C. Departmental reports are consistently issued in an untimely manner.D. Commissions are paid based on verified increases to sales.

Answer: B

 

NEW QUESTION 48
Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?

A. A staff auditor conducted a test of statistical sample items, the results of which fall below the acceptable error rate by less than one percentage point.B. A staff auditor conducted a test of 85 non-statistical sample items, selected randomly, and 5 are not in compliance with organizational policy.C. A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.D. Before the staff auditor conducted a test of statistical sample items, the AIC was already aware of underlying control weaknesses.

Answer: C

 

NEW QUESTION 49
Which of the following options describes the reason that conformance with The IIA's Code of Ethics is mandatory for internal auditors?

A. Ethical compliance provides the basis for stakeholder confidence in the competence of the internal audit activity and of professional internal auditors.B. Ethical compliance is necessary for internal auditors and the internal audit activity to accept responsibility for providing g absolute assurance about the organization's risk management.C. The internal audit activity's ethical compliance sets the tone for the ethical compliance by the organization's board, management, and employees.D. Ethical compliance provides the basis for stakeholder trust and confidence in the validity of the profession of internal auditing and the internal audit activity's findings.

Answer: D

 

NEW QUESTION 50
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