QUESTION: 105

According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?

The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.
The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.
The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.

Answer(s): B

Reveal Solution Next Question

QUESTION: 106

Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
The controller at a nationwide manufacturing company recently opted to no longer require two- week mandatory vacations for accounting staff.
Security cameras that monitor cash handling at the register are not functioning.
The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.

Answer(s): B

Reveal Solution Next Question

An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected.
Which of the following best describes this risk strategy?