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NEW QUESTION # 12
How do organizational values contribute to acting with integrity?
Answer: B
NEW QUESTION # 13
What is the design option that involves ceasing all activity or terminating sources that give rise to the opportunity, obstacle, or obligation?
Answer: A
Explanation:
Avoid is a risk management strategy that involves stopping activities or removing sources of risk entirely.
Definition:
Avoidance eliminates the possibility of a risk occurring by ceasing the activity or terminating the risk source.
Examples:
Not entering a risky market.
Discontinuing a product line with regulatory risks.
Why Other Options Are Incorrect:
A (Accept): Involves acknowledging the risk and taking no additional action.
B (Share): Involves transferring part of the risk to another party (e.g., insurance).
D (Control): Involves reducing the likelihood or impact of a risk without eliminating it.
Reference:
ISO 31000 (Risk Management): Highlights avoidance as one of the core risk treatment options.
COSO ERM Framework: Explains risk avoidance as a strategic decision to eliminate exposure.
NEW QUESTION # 14
In the IACM, what are the two types of Proactive Actions & Controls?
Answer: A
NEW QUESTION # 15
What does it mean for an organization to be "agile" within the context of the LEARN component?
Answer: D
NEW QUESTION # 16
The Critical Disciplines skills of Audit & Assurance help organizations through which of the following?
Answer: B
Explanation:
Audit & Assurance skills play a vital role in building trust and confidence within an organization and with its stakeholders. These skills help organizations establish a structured approach to evaluating and validating processes, controls, and systems for better decision-making. Here's how the correct answer applies:
* Prioritizing Assurance Activities:
* Organizations need to focus their assurance efforts on critical areas that pose the highest risks or have the most significant impact on strategic objectives.
* Frameworks like COSO Internal Control highlight the importance of scoping assurance to the most critical business processes.
* Planning and Performing Assessments:
* Audit professionals create and execute plans to assess operational, financial, and compliance- related processes.
* This involves collecting evidence, analyzing findings, and reporting results in alignment with standards like the International Standards for the Professional Practice of Internal Auditing (IIA Standards).
* Using Testing Techniques:
* Auditors employ various testing methods, such as walkthroughs, substantive testing, and sampling, to evaluate the effectiveness of controls.
* Communicating to Enhance Confidence:
* Effective communication of audit results to stakeholders ensures transparency, builds trust, and supports better decision-making.
Incorrect Options:
* A: Managing mergers and acquisitions and conducting due diligence are activities primarily linked to financial strategy and corporate development, not audit.
* B: Setting direction and aligning strategies are governance and leadership responsibilities, not core audit and assurance skills.
* D: Identifying and managing risks falls under risk management and crisis response rather than audit and assurance disciplines.
References and Resources:
* International Standards for the Professional Practice of Internal Auditing (IIA)
* COSO Internal Control - Integrated Framework
* ISO 19011:2018- Guidelines for Auditing Management Systems
NEW QUESTION # 17
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