Question 1

Which of the following is true regarding the purpose of the COSO enterprise risk management framework?

1. It is a process that is ongoing and flows throughout the organization.

2. It contributes to the formulation of the organization's mission and vision.

3. It enables internal audit to provide reasonable assurance to an organization's management and the board.

4. It enables the management of risks within an organization's risk appetite.

Options :

A : 1, 2, and 3 only

B : 1, 2, and 4 only

C : 1, 3, and 4 only

D : 2, 3, and 4 only

Answer: C

Question 2

An internal auditor is gathering evidence for an organization's internal audit engagement and requests a sample of vendor invoices from the organization. Which of the following is true regarding the reliability of this evidence?

Options :

A : The invoices have zero reliability.

B : The invoices have low reliability.

C : The invoices have medium reliability.

D : The invoices have high reliability.

Answer: C

Question 3

Which of the following organizations has reached the most mature level of corporate social responsibility?

Options :

A : An organization that is able to provide goods and services society needs and thus maximizes profit to its owners.

B : An organization that ensures compliance to legal frameworks of the countries in which it operates and sells its products.

C : . An organization that is willing to make contributions not mandated by law or economics and expects no payback.

D : An organization that requires its decision makers to act with equity, fairness, and respect for the rights of individuals.

Answer: D

Question 4

Which of the following risk management activities is most appropriate for an internal auditor to undertake?

Options :

A : Impose risk management processes.

B : Coordinate risk management activities.

C : Implement risk responses on management-s behalf.

D : Review the management of key risks.

Answer: D

Question 5

Who has the ultimate responsibility of implementing the organization's governance system?

Options :

A : Stakeholders

B : The board.

C : The chief executive officer.

D : Internal auditors

Answer: B

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