IIA-CIA-Part3 Practice Test

IIA-CIA-Part3 Practice Test practice questions, page 25 of 26, with answer review and explanations.

Question 121

In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?

  1. Giving assurance that risks are evaluated correctly.
  2. Developing the risk management strategy for the board's approval.
  3. Facilitating the identification and evaluation of risks.
  4. Coaching management in responding to risk.

Question 122

Which of the following is an example of a risk avoidance response?

  1. Buying an insurance policy to protect against loss events.
  2. Hedging against natural gas price fluctuations.
  3. Selling a non-strategic business unit.
  4. Outsourcing a high risk process to a third party.

Question 123

Which of the following statements are true regarding the use of heat maps as risk assessment tools? 1. They focus primarily on known risks, limiting the ability to identify new risks. 2. They rely heavily on objective assessments and related risk tolerances. 3. They are too complex to provide an easily understandable view of key risks. 4. They are helpful but limited in value in a rapidly changing environment.

  1. 1 and 2 only
  2. 1 and 4 only
  3. 2 and 3 only
  4. 3 and 4 only

Question 124

The most important reason to use risk assessment in audit planning is to:

  1. Identify redundant controls.
  2. Improve budgeting accuracy.
  3. Enhance assurance provided to management.
  4. Assist in developing audit programs.

Question 125

In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?

  1. Identifying the processes at the activity level.
  2. Analyzing the organization's strategic plan where the business processes are defined.
  3. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.
  4. Identifying the risks affecting the organization, the objectives, and then the processes concerned.