Problem questions B1 Flashcards
According to the IIA International Standards for the Professional Practice of Internal Auditing, what are standards of the internal audit charter?
The charter should set forth the purpose, authority, and responsibility of the internal audit activity
PAR
Which component of IC this activity relates to:
Type 1. Periodically comparing and updating the mission vision
Type 2. Periodically evaluation of what could go wrong and the effectiveness of procedure to prevent or detect errors.
Type 1: Monitoring
Type 2: Risk assessment
How is the likehood and impact of events when risk appetite has generally been exceeded?
The likelihood and impact of NEGATIVE events SIGNIFICANTLY exceeds residual risks.
What is the difference between:
a. Interview
b. Facilitated workshop
c. Event inventory
d. Questionnaire
a. Interview - 1 and 1 discussion with knowledgeable staff
b. facilitated workshop : - gather knowledgable people to discuss a topic
c. Event inventory = list of potential events which are generic lists related to an industry
d. Questionnaire = survey
- Ethic training, establish an ethics hotline
- Develop a uniform chart of accounts for all divisions
:– what is the objective among ORC?
- Compliance related
- Reporting
Which component of ERM addesses an entity’s reporting deficiencies?
Monitoring:
–deficiencies should be investigated in ongoing and separate evaluation and that deficiencies should be reported.
(note: Information and communication components includes Gathering and communicating financial and IC info, but does not address reporting deficiencies.)
What is the difference between Financial reporting competencies principal and Human resources principal of Control environment of IC integrated framework?
Financial reporting principle: – suggest strong control and encourage to retain qualified personnel to handle financial reporting,
HR principle :– suggest strong control and encourage HR policies to be compatible with effective financial reporting.
