Which of the following statements is true?

• A.When management decides to accept the risk of not taking action on an assurance observation, the (CAE) is responsible for judging whether or not that decision is prudent.
• B.An assurance engagement observation is considered remediated when management's corrective action plan is approved by the board.
• C.If management chooses not to take action on internal audit's assurance engagement observation, the chief audit executive (CAE) has a responsibility to propose an action plan to the board.
• D.Internal audit's responsibility for an assurance engagement observation ends when management implements changes to remediate the observation.

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During the filework phase of an assurance engagement the internal auditor decides that she wants to adjust the audit work program. Which of the following is the most appropriate next step for the auditor to take9

• A.Obtain the required resources, including IT. to complete the work
• B.Obtain approval from the engagement supervisor
• C.Discuss the change in scope with management of the area under review.
• D.Request additional information needed from management of the area under review.

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Which of the following statements is false regarding roles and responsibilities pertaining to risk management and control?

• A.Operating managers are responsible for assessing risks and controls in their departments.
• B.Internal auditors provide assurance about risk management and control process effectiveness.
• C.The chief audit executive is responsible for overseeing the evaluation risk management and control processes.
• D.Senior management is charged with overseeing the establishment risk management and control processes.

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Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
I. Facilitated meeting
II. Survey
III.
Management-produced analysis

• A.II and III only
• B.I, II, and III
• C.I only
• D.I and III only

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A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?

• A.Immediately seek additional resources from senior management and the board of directors to meet the needs of the organization.
• B.Seek approval from senior management and the board of directors for the plan change and advise them of the issue of limited resources.
• C.Present the plan change to senior management and request additional resources before going to the board of directors.
• D.Add this change to the plan and request senior management to indicate which other engagement should be deleted to keep the overall plan within resource constraints.

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