QUESTION: 33

Which of the following statements, if true, could justify an auditor's decision not to report governance-related control deficiencies to the audit committee?

Management plans to initiate corrective action
The board of directors has a separate corporate governance committee
The amounts and the potential risks associated with the deficiencies are not material to the overall organization.
Governance issues are complex and the auditor should rely on management's analysis of the extent of the problem

Answer(s): C

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QUESTION: 34

The primary purpose for the chief audit executive's communication of the internal audit activity's plans and resource requirements to senior management and the board is to

Identify internal audit engagement scope limitations
Indicate future internal audit staffing needs
Highlight the internal audit activity's view of significant risk areas
Ensure that the work of the internal audit activity supports the organization's objectives

Answer(s): D

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QUESTION: 35

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

Report the results of audit engagements to line management as well as to senior management
Conduct regularly scheduled audits of existing systems and initial audits of new computer systems after they have begun operating.
Interface primarily with senior management, minimizing interactions with line managers who are the subjects of internal audit work.
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(s): A

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According to the International Professional Practices Framework, which of the following describes a key objective of the risk management process that would also be a key responsibility of the internal audit activity?

Determine the level of risk acceptable to the organization, including the acceptance of risks designed to accomplish the organization's strategic plans.
Design and implement risk mitigation activities to reduce risk to levels that have been determined to be acceptable.
Receive periodic reports of the results of the risk management processes.
Conduct ongoing monitoring activities to periodically reassess risk and the effectiveness of the controls to manage risk.

Answer(s): D

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QUESTION: 33

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