IIA-CIA-Part1

IIA-CIA-Part1 practice questions, page 19 of 47, with answer review and explanations.

Question 91

Which of the following represents the correct order of the risk management process?

  1. Resource allocation, risk management metrics, risk assessment, post-mortem analysis, effective communication.
  2. Risk management metrics, resource allocation, risk assessment, effective communication, post-mortem analysis.
  3. Risk assessment, resource allocation, risk governance and reporting, post-mortem analysis, feedback.
  4. Resource allocation, risk monitoring, risk assessment, feedback, post-mortem analysis.

Question 92

Which of the following is a role of the board of directors in the governance process?

  1. Conduct periodic assessments of the organization's governance systems.
  2. Obtain assurance concerning the effectiveness of the organization's governance systems.
  3. Implement an effective system of internal controls to support the organization's governance systems.
  4. Review and approve operational goals and objectives.

Question 93

Which is the least effective form of risk management?

  1. Systems-based preventive control.
  2. People-based preventive control.
  3. Systems-based detective control.
  4. People-based detective control.

Question 94

Which of the following should be incorporated in a risk management policy? I. Boundaries and limit structures. II. Requirements for reporting risk. III. Risk authorities.

  1. I and II only
  2. I and III only
  3. II and III only
  4. I, II, and III.

Question 95

In an assurance engagement of treasury operations, an internal auditor is required to consider all of the following issues except:

  1. The audit committee has requested assurance on the treasury department's compliance with a new policy on the use of financial instruments.
  2. Treasury management has not instituted any risk management policies.
  3. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
  4. The external auditors have indicated some difficulties in obtaining account confirmations.