QUESTION: 85

Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?

The internal audit activity has to ensure team members' objectivity is not impaired.
Auditors cannot participate in an assurance engagement of a function for which they previously performed a consulting engagement.
The scope and objective of the engagement is agreed upon based on the engagement client's needs.
The internal audit activity must ensure management actions have been implemented effectively or risk accepted.

Answer(s): B

QUESTION: 86

A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

Continuously monitor the organization's overall risk activities in relation to its risk appetite.
Evaluate the adequacy and effectiveness of the organization's governance activities.
Oversee the establishment and administration of an effective risk management program.
Assist management in implementing recommended control improvements.

Answer(s): C

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QUESTION: 87

According to COSO, which of the following describes a principle related to the control environment?

The organization identifies and assesses changes that could significantly impact the system of internal control.
The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
The organization selects and develops control activities that contribute to the mitigation of risks.
The organization performs evaluations to ascertain whether internal control components are present and functioning.

Answer(s): B

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