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Which of the following best describes the internal audit activity's role in supporting the board in enterprise-wide risk assessment?

  1. Ensure that sound risk management processes are in place and functioning.
  2. Oversee risk management processes to determine if they are adequate and effective.
  3. Examine, evaluate, report on, and recommend improvements on the adequacy and effectiveness of risk processes.
  4. Implement risk management methodologies and controls to address risks identified.

Answer(s): C



Which of the following is the least appropriate action for an internal auditor to take in support of an organization's ethical culture?

  1. Assess the state of the ethical climate.
  2. Provide guidance to employees regarding ethical dilemmas.
  3. Evaluate the effectiveness of the organization's code of conduct.
  4. Determine the appropriateness of expected ethical attitudes and behaviors.

Answer(s): B



Which of the following should an internal audit activity take into consideration when evaluating an organization's privacy framework?

I). Types of information gathered by the organization.
II). Methods used to collect and store information.
III). Location and custody of key information.
IV). Intended use of information that is collected and stored.

  1. I and III only.
  2. I, II, and IV only.
  3. II, III, and IV only.
  4. I, II, III, and IV.

Answer(s): D



In addition to risk materiality, which of the following should be considered during the process of ranking and validating an organization's risk priorities?

  1. Possible financial loss.
  2. Competency of internal audit staff.
  3. Likelihood of risk occurrence.
  4. Liquidity of assets.

Answer(s): C






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