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IIA Business Knowledge for Internal Auditing Sample Questions (Q452-Q457):
NEW QUESTION # 452
Which of the following statements best describes the frameworks set forth by the International Standards Organization?
Answer: D
NEW QUESTION # 453
Which of the following is an example of a risk avoidance response?
Answer: C
NEW QUESTION # 454
A significant project is nearing its development stage end, and line management intends to apply for a final investment decision from senior management at an upcoming meeting. The internal audit function is at the fieldwork stage of an assurance engagement related to this project and discovers that tenders conducted for the project were not carried out transparently by line management. The audit report will not be ready by the upcoming senior management meeting. Which of the following actions is the most appropriate next step for the chief audit executive?
Answer: B
Explanation:
Since senior management is about to make a final investment decision, they must be made aware of the transparency issue with tenders before approving the project. The CAE should raise the issue with senior management immediately, even if the full report is not yet complete, to ensure that governance decisions are based on accurate risk information.
Option A (risk officer) may be informed later but does not replace informing decision-makers. Option C ignores urgent risk exposure. Option D is incorrect because halting the audit would suppress critical information.
Reference:
IIA Standards - Standard 2060: Reporting to Senior Management and the Board.
NEW QUESTION # 455
A flexible budget is a quantitative expression of a plan that:
Answer: C
Explanation:
A flexible budget is a series of budgets prepared for many levels of activity. It is designed to allow adjustment of the budget to the actual level of activity before comparing the budgeted activity with actual results.
NEW QUESTION # 456
Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?
Answer: C
NEW QUESTION # 457
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