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NEW QUESTION 22
According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?

A. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.B. The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.C. The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.D. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.

Answer: D

 

NEW QUESTION 23
An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?

A. The residual risk is higher than or equal to the risk appetite.B. The residual risk is lower than or equal to the risk appetite.C. The inherent risk is lower than or equal to the risk tolerance.D. The inherent risk is higher than or equal to the risk tolerance.

Answer: B

 

NEW QUESTION 24
If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

A. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.B. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.C. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.D. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

Answer: D

 

NEW QUESTION 25
According to IIA guidance, which of the following external groups is most likely to represent a liability risk, based on activities associated with the organization's corporate social responsibility program?

A. Activists.B. Suppliers.C. Investors.D. Consumers.

Answer: A

 

NEW QUESTION 26
Which of the following must be in existence as a precondition to developing an effective system of internal controls?

A. A risk assessment process.B. A strategic objective-setting process.C. An information and communication process.D. A monitoring process.

Answer: A

 

NEW QUESTION 27
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