Question 141
Which of the following is not an appropriate role of the internal audit activity in governance activities?
- Support the board in enterprise-wide risk assessment.
- Ensure the timely implementation of audit recommendations.
- Monitor compliance with the organization's ethics policies.
- Discuss areas of significant risk.
Question 142
When developing the annual audit plan and reviewing risk assessment priorities, a chief audit executive should always identify the:
- Potential recommendations for each auditable activity.
- Persons to whom engagement reports will be communicated.
- Engagement procedures to be used during the engagements.
- Internal audit resources required to achieve the audit plan.
Question 143
Which of the following actions by a chief audit executive would be most effective in preventing fraud?
- Ensure that the board is aware of all fraud that has been identified or reported.
- Train the internal audit staff in identifying fraud indicators.
- Review the adequacy of all policies that describe prohibited activities.
- Submit an annual report to the board on all fraud that has been detected.
Question 144
A chief audit executive would most likely use risk assessment for audit planning because it provides:
- A systematic process for assessing and integrating professional judgment about probable adverse conditions.
- A listing of potentially adverse effects on the organization.
- A list of auditable activities in the organization.
- The probability that an event or action may adversely affect the organization.
Question 145
Which of the following statements regarding organizational governance is not correct?
- An effective internal audit function is one of the four cornerstones of good governance.
- Those performing governance activities are accountable to the customer.
- Accountability is one of the key elements of organizational governance.
- Governance principles and the need for an internal audit function are applicable to governmental and not-for-profit activities.