right and wrong questions (1)

right and wrong questions (1) - When senior management...

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When senior management accepts a level of residual risk that the chief audit executive (CAE) believes is unacceptable to the organization, the CAE should: Answer WRONG Discuss the matter with knowledgeble senior management, and if not resolved, take it to the audit committee. According to COSO ERM, all of the following are elements of an entity's internal EXCEPT for: Answer Developing human resource standards. Establishing risk appetite. Which of the following is not an example of a risk-sharing strategy? Answer Selling a non-strategic business asset. Which of the following is the BEST reason for the chief audit executive (CAE) to consider the organization's strategic plan in developing the annual audit plan? Answer To ensure that the internal audit plan supports the overall business objective. In the risk management process, management's view of the internal audit activity's role is likely to be determined by all of the following factors except Answer Local conditions and customs of the country. A basic principle of governance is Answer Assessment of the governance process by an independent internal audit activity
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The scope of internal auditing work encompasses a systematic, disciplined approach to evaluating and improving the adequacy and effectiveness of all the following processes except Answer Financial statements. Which of the following are required of the internal audit function per the Standards ? Answer Obtain an annual representation from management acknowledging management's responsibility for the design and implementation of internal controls to prevent illegal acts. According to the Standards, which of the following must the internal audit manager think about when considering appropriate due care while planning an assurance engagement? Answer The cost of assurance is relationship to potential benefits. In the Standards for the Professional Practice of Internal Auditing, the word shall means Answer Compliance is mandatory. Which of the following types of IPPF guidance require(s) an exposure to the various IIA national institutes prior to its issuance?
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I II and IV Which of the following is NOT an appropriate governance role for an organization's board of directors? Answer Providing assurances directly to third parties that the organization's governance processes are effective. Who is responsible for establishing the strategic objectives of an organization? Answer The board and senior management jointly. Which of the following is not a potential value driver for implementing ERM? Answer
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This note was uploaded on 03/24/2011 for the course ACC 413 taught by Professor Cannon during the Spring '11 term at Grand Valley State.

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right and wrong questions (1) - When senior management...

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