IOS2601 MUTIPLE-CHOICE QUESTIONS EXAM PACK || VERIFIED

IOS2601 MUTIPLE-CHOICE QUESTIONS EXAM PACK || VERIFIED .11 principles of ISO 31000 - Answer-• Creates and protects value. • Is an integral part of all organizational processes. • Is a part of decision making • Explicitly addresses uncertainty. • Is systematic, structured, and timely • Is based on the best available information. • Is tailored. • Takes human and cultural factors into account.0 ○ Health related issues, different country's cultures • Is transparent and inclusive. • Is dynamic, iterative, and responsive to change. • Facilitates continual improvement of the organization. .2 principles of Monitoring - Answer-1. selects, develops and performs ongoing and separate evaluations of the controls 2. communicates deficiencies in a timely manner .2000 Managing internal auditing activity - Answer-* the CAE must effectively manage the internal audit activity to ensure that it adds value to the organizaion .3 components of value proposition - Answer-assurance, insight, objectivity .3 layers of monitoring activities - Answer-1. everyday activities performed by mgmt of a given area 2. non independent evaluation of internal controls performed by mgmt on a regular basis to identify and resolve any deficiency 3. independent assessment by an outside area or function .3 lines of defense for the governing body - Answer-1st line: mgmt controls, internal control measures 2nd line: financial controller, risk mgmt, compliance, health and safety, environmental, quality assurance 3rd: internal auditor .3 pillars of effective internal audit services - Answer-independence and objectivity, proficiency, due professional care .3 principles of control activities - Answer-1. the organization selects and develops control activities 2. selects and develops IT control activities 3. Deploys control activities through policies .3 Principles of Information and Communication - Answer-1. obtain relevant and quality info 2. internally communicates info 3. external communicates info .3 types of standards - Answer-attribute, performance standards, implementation standards .4 categories of risk - Answer-strategic, operational, financial reporting, compliance .4 Principles of Risk Assessment - Answer-1. clear objectives identified 2. Risk identification 3. Potential for fraud is considered 4. Identify and assess changes that can impact the system .4 principles of the code of ethics - Answer-integrity, objectivity, confidentiality, competency .4 types of objectives - Answer-strategic, operational, reporting, compliance objectives .5 main sections of the COSO framework - Answer-control environment, risk assessment, control activities, info and communication, monitoring activities .5 principles of control environment - Answer-1. commitment to integrity and ethical values 2. independence of the BOD 3. Structures, authorities, responsibilities are established by management for objectives 4.Attract, develop retain competent employees 5. people/individuals are accountable for their internal control .8 components of ERM - Answer-internal environment, setting objectives, event identification, assessment of risk, risk response, activities, information and communications, monitoring .assurance - Answer-an objective examination of evidence for the purpose of providing an independent assessment on risk management, control, or governance processes for the organization .attribute standards - Answer-addresses the attirbutes of organization and individuals performing internal auditing .auditing vs accounting - Answer-accounting collects, classifies, summarizes and communicates data, as well as measures and communicates business events and conditions. auditing considers business events and conditions also but does not have the task of measuring or communicating them. they review them for propriety. it is analytical and investigative .balanced scorecard - Answer-develop metrics for every process , so employees know what level it should be at to be successful and how it performs. The employee can know if they are doing a good job be seeing if they are at the standard or no .bottom up approach - Answer-begins by looking at all processes at the activity level. such an approach requires each area of the organization to identify and document the business processes in which they are involved .business process map - Answer-to document the understanding of a business process. it is a high level business process map that may follow narrative descriptions to explain the processes and controls. in the current process flow diagrams, controls are not depicted. .business risk identification - Answer-basic business risk model using the COSO framework .common control activities present in well designed system of controls - Answer-segregation of incompatible function, performance review, IT access control activities, documentation, physical access control activities, IT application, physical access control activities .competency - Answer-internal auditors apply the knowledge, skill, and experience in the performance of internal audit services inaccordance with the International standards for the professional practice of internal auditing shall continually improve their proficiency and the effectiveness and quality of their services--- CPEs .compliance - Answer-adherence to policies, plans, procedures, laws, regulations, contracts of other requirements .compliance risk - Answer-legal risk