Question

6) In the Three Lines of Defense Model, the primary responsibility for managing risks belongs to

A)   The CEO

B)   Internal auditing

C)   The risk management function

D)   Operational management

E)   The board of directors

7) Which of the following components of the IPPF is not considered to be mandatory?

A) The Code of Ethics

B) Definition of Internal Auditing

C) Implementation Guidance

D) Mission of Internal Auditing

E)  Standards

8) Which of the following best describes internal auditing’s primary purpose in reviewing the organization’s existing governance, risk management and controls processes?

A)  To ensure all weaknesses in the internal control system are corrected

B)  To develop the audit plan

C)  To provide reasonable assurance that the processes will enable the organization’s

      objectives and goals to be met

D)  To offer an opinion as to whether the financial statements are fairly stated

E)   To comply with the IPPF Code of Ethics

9) Which of the following is true about internal vs. external auditing?

A) External auditors and internal auditors are prohibited from sharing information

B) The tool and techniques used by internal and external auditing are different

C) Both follow the same code of ethics

D) Internal auditing is less focused on the financial statements than external auditing

E) All of the above

10) In which situation does the internal auditor lack objectivity?

A) The internal auditor recommends standards of performance for an outsourcing contract

B) The internal auditor discusses the status of a system implementation over lunch at a vendor conference

C) The internal auditor provides assurance services for a function in which the auditor had responsibility for eleven  

     months ago.  

D) The internal auditor reviews audit findings with the CAE prior to issuing the final audit report

E) All of the above

Answer 1

6) In the Three Lines of Defense Model, the primary responsibility for managing risks belongs to

Below are three lines of defense model

1. Management in operation

2. processes placed or applied or developed by management

3. Independent assurance

According to the above explanation, the correct option will be D. Operational Management

7) Which of the following components of the IPPF is not considered to be mandatory?

We have below six components in IPPF

1. The Definition of internal auditing

2. The code of ethics

3. Standards

4. Advisories

5. position papers

6. practice guides

According to above explanation correct option will be D) Mission of Internal Auditing

9) Which of the following is true about internal vs. external auditing?

Internal auditing will be conducted on company internal risks, standards as designed by management.

External auditing will be conducted on the company by external sources periodically to ensure the company is complying with the standards and compliance's according to industry, government, tax authorities

According to above explanation correct option will be B) The tool and techniques used by internal and external auditing are different

10) In which situation does the internal auditor lack objectivity?

The internal auditor's aim will be to ensure the correctness of financial records and standardized operations according to the company's internal policies.

According to above explanation correct option will be E) All of the above. In all options auditor is getting engaged in external source of decision making.