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Business, Special Education
Professional Development
Risk-based Internal Audit
12 questions
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- 1. Multiple Choice
Which type of team workshop format begins by listing all possible barriers, obstacles, threats, and exposures that might prevent achieving an objective?
Process-based format.
Objective-based format.
Risk-based format.
Control-based format.
- 2. Multiple Choice
Which type of format of facilitated team workshops focus on the best way to accomplish the goals of the organization?
Objective-based.
Process-based.
Risk-based.
Control-based.
- 3. Multiple Choice
In which format of facilitated team workshop does the facilitator identify the key risks and controls before the beginning of the workshop?
Control-based format.
Risk-based format.
Process-based format.
Objective-based format.
- 4. Multiple Choice
When internal auditors perform a consulting engagement, what is the best statement of their responsibility regarding risk?
Be alert to the existence of significant risks.
Address risk consistent with engagement objectives and be alert to certain other risks.
Assume responsibility for managing risks.
Consider only the risk consistent with engagement objectives.
- 5. Multiple Choice
Risk registers describe direct links between which of the following?
Risk acceptance and risk avoidance.
Risk categories and risk aspects.
Risk assignment and risk sharing.
Risk limitation and risk spreading.
- 6. Multiple Choice
All of the following provide effective relationships in the organization’s governance framework except:
Organizational processes.
Governance.
Risk management.
Internal controls.
- 7. Multiple Choice
Who is responsible for establishing the strategic objectives of an organization?
The board of directors.
Senior management.
Consensus among all levels of management.
The board and senior management jointly.
- 8. Multiple Choice
Who is ultimately responsible for identifying new or emerging key risk areas that should be covered by the organization’s governance process?
The board of directors.
Senior management.
Risk owners.
The internal audit function.
- 9. Multiple Choice
The internal audit function should not:
Assess the organization’s governance and risk management processes.
Provide advice about how to improve the organization’s governance and risk management processes.
Oversee the organization’s governance and risk management processes.
Coordinate its governance and risk management-related activities with those of the independent outside auditor.
- 10. Multiple Choice
In assessing organizational risk in a manufacturing organization, which of the following would have the greatest long-range impact on the organization?
Advertising budget.
Production scheduling.
Inventory policy.
Product quality.
- 11. Multiple Choice
What is residual risk?
Risk that is not managed.
Underlying risk in the environment.
Impact of risk.
Risk that is under control.
- 12. Multiple Choice
The term “risk” is best defined as the possibility that:
Management will, either knowingly or unknowingly, make decisions that increase the potential liability of the organization.
An event could occur affecting the achievement of objectives.
Financial statements or internal records will contain material misstatements.
An internal auditor will fail to detect a material misstatement that causes financial statements or internal reports to be misstated or misleading.
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