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IIA-CIA-Part1 – Certified Internal Auditor - Part 1, The Internal Audit Activity's Role in Governance, Risk, and Control

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Showing 4–6 of 20 questions

Question 4 (Volume A)

Which of the following is an appropriate role for the board in governance?

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    Preparing written organizational policies that relate to compliance with laws, regulations, ethics, and conflicts of interest.
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    Ensuring that financial statements are understandable, transparent, and reliable.
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    Assisting the internal audit activity in performing annual reviews of governance.
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    Working with the organization's attorneys to develop a strategy regarding current litigation, pending litigation, or regulatory proceedings governance.
Question 5 (Volume B)

The best reason for separating the cash-receiving function from the related record-keeping function is to:

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    Segregate cash payments from cash receipts.
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    Provide accountability for cash received.
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    Minimize misappropriations in cash receipts.
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    Improve physical security over the cash-receiving function.
Question 6 (Volume B)

The chief audit executive for an organization has just completed a risk assessment process, identified the areas with the highest risk, and assigned an audit priority to each. Which of the following statements is true and consistent with the International Professional Practices Framework?

I. Items should be ranked in the order of quantifiable dollar exposure to the organization.

II. The audit priorities should be in order of major control deficiencies.

III. The risk assessment, though quantified, is the result of professional judgments about both exposures and probability of occurrences.

Select an option, then click Submit answer.

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    I only
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    III only
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    II and III only
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    I, II, and III.
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    Items should be ranked in the order of quantifiable dollar exposure to the organization.
    II. The audit priorities should be in order of major control deficiencies.
    III. The risk assessment, though quantified, is the result of professional judgments about both exposures and probability of occurrences.