Risk assessments are valuable to the internal audit activity's planning process because they assist in

Eliminating all areas with low risk from the audit plan.
Educating management on the importance of keeping the internal audit activity informed of organizational changes.
Identifying the audit universe or auditable activities that need to be reviewed.
Identifying risks that management and the internal auditors have overlooked.

Answer(s): C

Which of the following audit activities is within the scope of assurance activities as stated in the International Professional Practices Framework?

Review a make-or-buy decision and report a recommendation to management for approval.
Participate in negotiations for a corporate acquisition.
Assess financing alternatives for a new generator.
Perform an evaluation of management's planning process.

Answer(s): C

Which of the following would be the most useful in developing an annual audit plan?

Answer(s): D

Which of the following is true with respect to the risk assessment process?

The ethical climate should not be included since this factor cannot be measured quantitatively.
More than one risk factor may have to be used to ensure that the risk assessment is comprehensive.
Each risk factor should be given equal weighting in order to reduce the opportunity for bias.
The risk assessment process should be conducted at least every three years.

Answer(s): B

Free CIA Exam Braindumps (page: 30)