QUESTION: 157

According to IIA guidance, which of the following should be formally documented in the internal audit charter?

The internal audit activity's responsibility for imposing risk management processes.
The internal audit activity's responsibility for the organization's governance framework.
The nature of consulting services provided by the internal audit activity.
The budgeting process for the internal audit activity.

Answer(s): C

A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property.
What change of risk response strategy does this course of action most likely reflect?

From sharing to reduction.
From acceptance to reduction.
From sharing to avoidance.
From acceptance to avoidance.

Answer(s): A

Reveal Solution Next Question

QUESTION: 159

Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).
Approve the annual budget and resource plan for the internal audit activity.
Assist the CAE with hiring objective and competent internal audit staff.
Encourage the CAE to communicate and coordinate with the external auditor.

Answer(s): A

Reveal Solution Next Question

QUESTION: 160

Which of the following is an example of a risk management avoidance response?

Exiting a marketplace.
Recalling a product.
Obtaining product insurance.
Outsourcing production.

Answer(s): A

Reveal Solution Next Question

Free IIA-ACCA Exam Braindumps (page: 40)

QUESTION: 157

QUESTION: 158

QUESTION: 159

QUESTION: 160