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NEW QUESTION 52
An internal auditor needs to recommend a policy element to be included in an organization’s code of ethics.
Which of the following recommendations would be most effective?
- A. Senior management should be granted specific exemptions to the code of ethics.
- B. Whistleblowing should be discouraged because it can cause distrust among employees.
- C. Ethics should vary with local customs in the organization’s foreign operations.
- D. Ethical behavior should be incorporated into performance evaluations.
Answer: D
NEW QUESTION 53
Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.
- A. 1 and 2 only
- B. 3 and 4 only
- C. 1, 3, and 4 only
- D. 2, 3, and 4 only
Answer: D
NEW QUESTION 54
According to IIA guidance, which of the following best describes processes and tools typically used in ongoing internal assessments?
- A. Benchmarking of the internal audit activity’s practices and performance.
- B. Self-assessments and surveys of stakeholder groups.
- C. Analysis of performance metrics such as cycle times.
- D. Report of internal assessment results, response plans, and outcomes.
Answer: C
NEW QUESTION 55
Who is responsible for setting the risk appetite?
- A. Operations management.
- B. Chief risk officer.
- C. Board of directors.
- D. External auditors.
Answer: C
NEW QUESTION 56
Which of the following would be considered a preventive control?
- A. A library control log.
- B. A software scan of financial records for irregularities.
- C. A review of exception reports.
- D. A password lock on a server.
Answer: D
NEW QUESTION 57
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