Risk-based Internal Audit

Which type of team workshop format begins by listing all possible barriers, obstacles, threats, and exposures that might prevent achieving an objective?

• Process-based format.

• Objective-based format.

• Risk-based format.

• Control-based format.

Which type of format of facilitated team workshops focus on the best way to accomplish the goals of the organization?

• Objective-based.

• Process-based.

• Risk-based.

• Control-based.

In which format of facilitated team workshop does the facilitator identify the key risks and controls before the beginning of the workshop?

• Control-based format.

• Risk-based format.

• Process-based format.

• Objective-based format.

When internal auditors perform a consulting engagement, what is the best statement of their responsibility regarding risk?

• Be alert to the existence of significant risks.

• Address risk consistent with engagement objectives and be alert to certain other risks.

• Assume responsibility for managing risks.

• Consider only the risk consistent with engagement objectives.

Risk registers describe direct links between which of the following?

• Risk acceptance and risk avoidance.

• Risk categories and risk aspects.

• Risk assignment and risk sharing.

• Risk limitation and risk spreading.

All of the following provide effective relationships in the organization’s governance framework except:

• Organizational processes.

• Governance.

• Risk management.

• Internal controls.

Who is responsible for establishing the strategic objectives of an organization?

• The board of directors.

• Senior management.

• Consensus among all levels of management.

• The board and senior management jointly.

Who is ultimately responsible for identifying new or emerging key risk areas that should be covered by the organization’s governance process?

• The board of directors.

• Senior management.

• Risk owners.

• The internal audit function.

The internal audit function should not:

• Assess the organization’s governance and risk management processes.

• Provide advice about how to improve the organization’s governance and risk management processes.

• Oversee the organization’s governance and risk management processes.

• Coordinate its governance and risk management-related activities with those of the independent outside auditor.

In assessing organizational risk in a manufacturing organization, which of the following would have the greatest long-range impact on the organization?

• Advertising budget.

• Production scheduling.

• Inventory policy.

• Product quality.