Which of the following is an example of a risk avoidance response?

• A.Hedging against natural gas price fluctuations.
• B.Buying an insurance policy to protect against loss events.
• C.Outsourcing a high risk process to a third party.
• D.Selling a non-strategic business unit.

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The cost to enter a foreign market would be highest in which of the following methods of global expansion?

• A.Licensing.
• B.Overseas production.
• C.Joint ventures.
• D.Exporting.

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During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

• A.The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.
• B.The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.
• C.The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.
• D.The audit supervisor should include the new contracts in the finding for the final audit report.

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Which of the following distinguishes the added-value negotiation method from traditional negotiating methods?

• A.Each party's negotiator presents a menu of options to the other party.
• B.Each negotiator starts with an offer, which is optimal from the negotiator's perspective.
• C.Each party adopts one initial position from which to start.
• D.Each negotiator minimizes the information provided to the other party.

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According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

• A.To fulfill regulatory and compliance requirements.
• B.To enable Triple Bottom Line reporting capability.
• C.To facilitate the conduct of risk assessment.
• D.To achieve and maintain sustainable development.

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