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NEW QUESTION 44
Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?
- A. Because the audit committee is ultimately responsible for ensuring that appropriate control processes are in place to mitigate risks associated with personal information, the internal audit activity is C. required to conduct privacy assessments.
- B. The internal audit activity should have appropriate knowledge and competence to conduct an asses .......framework.
- C. The internal audit activity may delegate to nonaudit IT specialists the responsibility of determining whether personal information has been secured adequately and data protection controls are sufficient.
- D. If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.
Answer: B
NEW QUESTION 45
Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?
- A. They require yes/no responses to specific questions, not open-ended responses.
- B. They do not capture all controls that may exist.
- C. They are useful in assessing risk.
- D. They serve as a reminder of what controls should exist in a process.
Answer: B
NEW QUESTION 46
An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?
- A. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
- B. Stakeholders will have more assurance that the risks are assessed consistently.
- C. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
- D. Management will be able to reduce inherent risk because they will have a better understanding of risk.
Answer: B
NEW QUESTION 47
According to IIA guidance, which of the following best describes processes and tools typically used in ongoing internal assessments?
- A. Analysis of performance metrics such as cycle times.
- B. Report of internal assessment results, response plans, and outcomes.
- C. Self-assessments and surveys of stakeholder groups.
- D. Benchmarking of the internal audit activity's practices and performance.
Answer: A
NEW QUESTION 48
An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?
- A. Risk avoidance.
- B. Risk-benefit analysis.
- C. Risk sharing.
- D. Risk acceptance.
Answer: D
NEW QUESTION 49
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