Question 1

Which of the following would be the least significant consideration when performing a risk analysis?

Options :

A : Financial exposure and potential loss.

B : Skills available within the audit staff.

C : Results of prior audits.

D : Major operating changes.

Answer: B

Question 2

Which of the following actions should the organization’s governing body perform to provide the most effective governance over the organization’s culture?

Options :

A : Coordinate control activities.

B : Provide direction.

C : Design key controls.

D : Deliver assurance.

Answer: B

Question 3

In a well-developed management environment, the internal audit activity would.

Options :

A : Report the results of audit engagements to line management as well as to senior management.

B : Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating

C : Interface primarily with senior management, minimizing interactions with line managers who are the subjects of internal audit work

D : Focus on the maintenance of accounting controls (such as segregation of the duties of authorization, recording, and custody) and report results to the audit committee.

Answer: A

Question 4

Once an organization’s risks are identified, what would be the next step to ensure resources are properly allocated to manage those risks?

Options :

A : Risk responses must be selected.

B : Risks must be assessed.

C : The risk universe must be established.

D : Risk responses must be aligned.

Answer: A

Question 5

Which of the following actions should an internal auditor take to exercise due professional care?

1. Consider the probability of significant noncompliance in each audit engagement.

2. Weigh the cost of assurance against the benefits.

3. Perform assurance procedures with sufficient care to ensure that all risks are identified.

Options :

A : 1 and 2 only

B : 1 and 3 only

C : 2 and 3 only

D : 1, 2, and 3

Answer: A