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| Section | Objectives |
|---|---|
| Risk Identification and Assessment | - Risk assessment frameworks - Risk prioritization techniques - Risk identification methods |
| Assurance of Risk Management | - Assurance mapping - Reporting risk and assurance results - Internal audit assurance over ERM |
| Risk Response and Mitigation | - Risk treatment strategies - Monitoring risk responses - Control design and evaluation |
| Risk Management Governance | - Organizational governance structures - Three lines model / internal audit role - Risk oversight responsibilities |
Question 1
The manager for an organization's accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?
A. A review of the employees' sports club finances, which are overseen by the chief audit executive.
B. An operations audit of the accounts payable department.
C. A consulting engagement related to a new accounts payable optimization initiative.
D. An assurance review for a sales program on which she previously provided consultation.
Question 2
Which of the following is a second line of defense in effective risk management and control?
A. Internal audit department.
B. Credit department.
C. Purchasing department.
D. Compliance department.
Question 3
Which of the following actions best demonstrates that an internal auditor is exercising due professional care?
A. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.
B. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
C. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.
D. The auditor recommends improvements for all of the organization's procedures and practices.
Question 4
Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?
A. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
B. Review of records involving safety violations, filed by facility production employees.
C. Questioning of facility management, including the facility safety officer.
D. Observation of the facility during operations.
Question 5
Which of the following options is the most cost-effective and efficient way for internal auditors to keep current with the latest developments in the internal audit profession?
A. Attending annual professional conferences and seminars.
B. Pursuing as many professional certifications as possible.
C. Participating in on-the-job training in various departments of the organization.
D. Maintaining membership in The HA and similar professional organizations and subscribing to relevant email updates or news feeds.
Solutions:
| Question 1 Answer: A | Question 2 Answer: D | Question 3 Answer: B | Question 4 Answer: D | Question 5 Answer: D |
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