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Certified Internal Auditor Questions 236–240 (page: 49)

Updated On: 10-Feb-2026

Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?

  1. Determining the scope.
  2. Reviewing internal controls.
  3. Testing.
  4. Evaluating findings.

Answer(s): A



The best method for assessing the relative importance of risk factors is to:

  1. Change the rating of the factors from a 1-3 scale to a 1-5 scale.
  2. Assign weights to the factors based on the comparative impact.
  3. List the risk factors in a priority order.
  4. Use data from an independent source.

Answer(s): B



Which of the following audit planning activities adds the least value in understanding the current risk exposures facing the corporation?

  1. Review of organizational strategic plans and operational plans.
  2. Consultation with senior management and the audit committee.
  3. Review of the external auditor's risk assessment.
  4. Review of corporate performance reporting and benchmarking.

Answer(s): D



The internal audit activity's primary responsibility in a review or examination of the organization by an external regulatory body is to:

  1. Verify that regulatory reviews occur with adequate frequency.
  2. Provide follow-up to determine if the regulator's findings are appropriately resolved by management.
  3. Prepare documentation for the regulator.
  4. Document the responses to the regulator's findings.

Answer(s): B



Under what circumstances would internal audit not become involved when intentional misconduct is suspected?

  1. Management is involved in wrongdoing.
  2. Management is running a parallel investigation.
  3. Management does not believe a trusted employee could be guilty.
  4. Management does not maintain strong internal controls.

Answer(s): B



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