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465
ch 4
| Question | Answer |
|---|---|
| 1.According to COSO ERM, all of the following are elements of an organization's internal environment except: | A-Setting organizational objectives |
| 2.Which of the following external events will most likely impact a defense contractor that relies on large government contracts for its success? | C-Political Event |
| 3.Which of the following is not an example of a risk-sharing strategy? | B-Selling a nonstrategic business unit. |
| 4.An organization tracks a website hosting anonymous blogs about its industry. Which of the following may create the greatest risk if this organization makes business decisions based on the information contained on this website? | D-Accuracy and reliability of the information. |
| 5.Who is responsible for implementing ERM? | D-Management throughout the organization. |
| 7.Which of the following is the best reason for the CAE to consider the organization's strategic plan in developing the annual internal audit plan? | A-To ensure that the internal audit plan supports the overall business objectives. |
| 8.When senior management accepts a level of residual risk that the CAE believes is unacceptable to the organizational, the CAE should: | D-Discuss the matter with knowledgeable members of senior management and, if not resolved, take it to the audit committee. |
| 9.The CAE is asked to lead the enterprise risk assessment as part of an organization's implementation of ERM. Which would not be relevant with respect to protecting the internal audit function's independence and the objectivity of its internal auditors? | C-The internal audit function obtains assistance from an outside consultant in the conduct of the formal risk assessment session. |
| 10.It is currently on a two-year audit cycle. Which will likely have the greatest impact on the scope and approach of the internal audit engagement? | D-A new system was implemented during the year, which changed how the transactions are processed. |
| 11.A manufacturing company has identified the following risk:"Failure of employees to conduct required quality control procedures may result in a high level of customer returns." To which type of objective does this risk most directly relate? | B-Operations |
| 12.A risk that a new competitor will significantly reduce the market share of an organization's product likely relates to which type of objective? | A-Strategic |
| 6.Which if the following is not a potential value driver for implementing ERM? | A-Financial results will improve in the short run. |
Created by:
jfraed
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