QUESTION: 181

Which of the following is an example of a risk avoidance strategy?

Hedging against exchange rate variations.
Limiting access to an organization's data center.
Selling a nonstrategic business unit.
Outsourcing a high-risk activity.

Answer(s): C

QUESTION: 182

Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

An independent third party has assessed the organization's system of internal controls to be adequate and effective.
The chief audit executive reports both functionally and administratively to the CEO.
The internal audit charter is drafted properly and approved by the appropriate parties.
The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.

Answer(s): B

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QUESTION: 183

A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?