IIA-CIA-Part1 Practice Test & Exam Questions (Page 20 )

Which of the following represents the correct order of the risk management process?

Resource allocation,risk management metrics,risk assessment,post-mortem analysis,effective communication.
Risk management metrics,resource allocation,risk assessment,effective communication,post-
mortem analysis.
Risk assessment,resource allocation,risk governance and reporting,post-mortem analysis,feedback.
Resource allocation,risk monitoring,risk assessment,feedback,post-mortem analysis.

Answer(s): C

Which of the following is a role of the board of directors in the governance process?

Conduct periodic assessments of the organization's governance systems.
Obtain assurance concerning the effectiveness of the organization's governance systems.
Implement an effective system of internal controls to support the organization's governance systems.
Review and approve operational goals and objectives.

Answer(s): B

Which is the least effective form of risk management?

Answer(s): D

Which of the following should be incorporated in a risk management policy?

Boundaries and limit structures.
II. Requirements for reporting risk.
III. Risk authorities.
I and IIonly
I and IIIonly
II and IIIonly
I,II,and III.

Answer(s): D

In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues except:

The audit committee has requested assurance on the treasury department's compliance with a new policy on the use of financial instruments.
Treasury management has not instituted any risk management policies.
Due to the recent sale of a division,the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
The external auditors have indicated some difficulties in obtaining account confirmations.

Answer(s): D

IIA IIA-CIA-Part1 Exam
CIA Part 1 - Essentials of Internal Auditing (Page 20 )