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NEW QUESTION 28
A multinational organization has asked the internal audit activity to assist in setting up the organization’s risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant.
Which of the following tasks is appropriate for the CAE to undertake?
- A. Determine the number of significant risks for management to report to the board.
- B. Establish the degree of risk appetite for management to accept.
- C. Set risk indicators and mitigation plans for management to implement.
- D. Coordinate and facilitate risk workshops for management to attend.
Answer: A
NEW QUESTION 29
When developing the organization’s first risk universe, which of the following would the chief audit executive be least likely to consider?
- A. The exposure to risks following management’s risk responses.
- B. The amount of risk that an organization is willing to seek or accept.
- C. The extent and degree of interdependency for identified key risks.
- D. The boundaries established to manage the amount of risk taken.
Answer: A
NEW QUESTION 30
A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO’s internal control framework?
- A. Information and communication.
- B. Control activities.
- C. Monitoring activities.
- D. Control environment.
Answer: D
NEW QUESTION 31
According to COSO, which of the following describes a principle related to the control environment?
- A. The organization selects and develops control activities that contribute to the mitigation of risks.
- B. The organization performs evaluations to ascertain whether internal control components are present and functioning.
- C. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
- D. The organization identifies and assesses changes that could significantly impact the system of internal control.
Answer: C
NEW QUESTION 32
……
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