IIA-CIA-Part1 Exam Dumps - Essentials of Internal Auditing

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Question # 137

Which of the following is true about corporate social responsibility (CSR)?

Social and environmental considerations are required parts of an organization's decision making

The Global Reporting Initiative provides standards on required disclosures of CSR.

CSR activities are overseen and managed by operational management.

Internal auditors can provide assurance on reported sustainability results.

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Question # 138

It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?

The cost-benefit relationship of planned audits.

Proficiency needed to carry out engagements.

Achievement of the objectives of internal control.

Quantity of the audits performed.

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Question # 139

Which of the following processes does the board manage to ensure adequate governance?

Establish and measure performance objectives for the internal audit activity.

Select board members with necessary knowledge and skills.

Develop, approve, and execute the strategic plan of the organization.

Develop strategies to mitigate the risks to achieving the organizationâ€™s objectives

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Question # 140

Which of the following statements is true regarding organizational independence of the internal audit activity (IAA)?

Reporting to a higher level within the organization reduces the potential scope of engagements that can be undertaken by the IAA.

The benefit of the IAA's organizational independence is realized primarily via reduced costs for the external auditor.

Independence is impaired when the scope of the IAA is subject to changes required by senior management.

Inadequate organizational independence can result in the chief audit executive being able to fire staff without consulting the audit committee.

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Question # 141

Which of the following is most likely to be considered a control weakness?

Vendor invoice payment requests are accompanied by a purchase order and receiving report.

Purchase orders are typed by the purchasing department using prenumbered forms.

Buyers promptly update the official vendor listing as new supplier sources become known.

Department managers initiate purchase requests that must be approved by the plant superintendent.

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Question # 142

A chief audit executive (CAE) was asked by senior management to establish and manage a risk management function. A new chief risk officer was hired a year later to assume these responsibilities. As this function was included in the current annual audit plan, the CAE engaged an external resource for a risk management engagement. Which of the following potential threats to objectivity was the CAE likely addressing?

Self-review threat.

Advocacy threat.

Familiarity threat.

Personal relationship threat.

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Question # 143

Which of the following skills is critical for assessing corporate social responsibility through a self-assessment?

Assessment skills

Assurance skills

Interviewing skills

Facilitation skills

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Question # 144

Which of the following scenarios depicts an appropriate role for the internal audit activity to take regarding an organization's risk management process?

Internal audit designs and implements the organization's controls to help manage risk.

Internal audit sets the organization's risk tolerance and promotes awareness throughout the organization.

Internal audit assesses whether the organization's risk management processes are effective.

Internal audit is responsible for safeguarding the organization's assets and preventing loss from occurring.

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