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IIA-ACCA – ACCA CIA Challenge Exam

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Showing 19–20 of 20 questions

Question 19 (Business Knowledge for Internal Auditing)

Which of the following statements is correct regarding risk analysis?

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    The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

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    The highest risk assessment should always be assigned to the area with the largest potential loss.

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    The highest risk assessment should always be assigned to the area with the highest probability of occurrence.

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    Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.


Question 20 (Practice of Internal Auditing)

Which of the following is the most important concept to be included in a consulting engagement agreement?

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    Define the duties and responsibilities needed from management to perform the engagement.

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    Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.

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    Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.

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    Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.