IIA-CIA-Part3 Business Knowledge for Internal Auditing

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IIA-CIA-Part3

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Question 1

Which of the following statements regarding organizational governance is not correct?

A. An effective internal audit function is one of the four cornerstones of good governance.

B. Those performing governance activities are accountable to the customer.

C. Accountability is one of the key elements of organizational governance.

D. Governance principles and the need for an internal audit function are applicable to governmental and not-for-profit activities.

Answer: B

Question 2

Which of the following is the role of the board of directors in the governance process?

A. Conduct periodic assessments of the organization’s governance systems.

B. Obtain assurance concerning the effectiveness of the organization’s governance systems.

C. Implement an effective system of internal controls to support the organization’s governance systems.

D. Review and approve operational goals and objectives

Answer: B

Question 3

Which is the least effective form of risk management?

A. Systems-based preventive control

B. People-based preventive control

C. Systems-based detective control

D. People-based detective control

Answer: D

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