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NEW QUESTION 34
What is the primary purpose of a risk management program?
- A. Reduce risk to a tolerable level.
- B. Transfer all risks to external third parties.
- C. Reduce all risks regardless of costs.
- D. Identify every significant risk to avoid it.
Answer: A
NEW QUESTION 35
In addition to her internal audit activity responsibilities, the chief audit executive has been asked to oversee the organization's insurance function. Which of the following responses is most appropriate?
- A. Report the request to the board and recommend alternate processes to obtain assurance related to insurance activities.
- B. Promptly remove the organization's insurance function from the audit universe.
- C. Welcome the additional responsibility, as it represents an opportunity to gain more information for future audits.
- D. Revise the internal audit charter to include oversight of the insurance function, ensuring that all of her responsibilities are properly documented.
Answer: A
NEW QUESTION 36
A significant number of employees expressed concerns of a hostile work environment within a large manufacturing plant, which is in contrast to the organization's stated culture of tolerance and open communication. Which of the following approaches would be most effective for an internal auditor to assess whether the organization supports a culture of tolerance and open communication?
- A. Compare plant employees' compensation and benefits with those at similar sized organizations that have a stated culture of tolerance and open communication.
- B. Evaluate organization policies and procedures for references related to encouraging tolerance and open communication.
- C. Conduct a meeting with all plant employees and management to discuss tolerance and open communication
- D. Assess plant employees' social media activity for specific messages related to tolerance and open communication
Answer: B
NEW QUESTION 37
How should the internal audit activity promote continuous improvement of organizational controls?
- A. By implementing an internationally accepted internal control framework across the organization
- B. By assessing implementation of controls m individual processes during audit engagements
- C. By facilitating control self-assessment sessions for managers responsible for business processes
- D. By identifying the most significant business processes and designing effective controls for those processes
Answer: C
NEW QUESTION 38
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