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CIA Exam Part 1 Governance
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CIA Exam Part 1 Governance
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CIA Exam Part 1 GovernanceA company has established an employee wellness program with well-defined internal
controls such as for reimbursements and vendor fees. Management has asked the chief
compliance officer and the chief audit executive separately to periodically review the
program. The company's key motivation to do this should be to - ANS-be in line with its
corporate social responsibilities.
A fraud was recently discovered in the organization. The executive vice president of the
affected functional area meets with the chief audit executive (CAE) and asks, "Where
were the internal auditors? They haven't audited our area in two years!" Which is the
best response from the CAE? - ANS-"The primary responsibility of monitoring rests with
management."
A section of a written code of conduct regarding conflict of interest should - ANS-include
provisions for activities that reflect on the organization's reputation.
A strong control environment requires a strong tone at the top. Which is the best
approach to understand an organization's culture and the tone at the top? -
ANS-Review the mission and value statements, whistleblower policy, and code of
conduct.
According to COSO's Internal Control—Integrated Framework, which is a point of focus
for the Integrity and Ethical Values Principle? - ANS-The organization addresses
deviations in a timely manner.The organization demonstrates commitment to integrity
and ethical values by addressing deviations in a timely manner, evaluating adherence to
standards of conduct, establishing standards of conduct, and setting the tone at the top.
The board's establishment of oversight responsibilities is a point of focus for the
"Assignment of Authority and Responsibility Principle". The organization's evaluation of
competence and addressing shortcomings is a point of focus for the "Human Resource
Policies and Practices Principle". The board operating independently is a point of focus
for the "Assignment of Authority and Responsibility Principle."
An airline's corporate social responsibility (CSR) officer wants to put numerous
education and social benefits programs in place for employees and their families due to
the nature of many of their safety-sensitive positions. Meeting this need has a cost.
Which is the best way for the officer to justify this expense? - ANS-If these needs can
be met cost-effectively, it will reduce organizational risk.
, An organization requires employees in safety-sensitive positions to have a medical
exam every year. The human resources department administers the program and
maintains strict confidentiality over the process due to privacy issues, and it shares the
results with the operating department only when a request is appropriate. What aspect
of internal controls is being affected in this process? - ANS-Information and
communicationCulture can impact information and communication and monitoring
activities related to internal controls. Some cultures may be better than others at
ensuring that the objectives and responsibilities for internal control are internally
communicated to the right persons, for example.
An organization's governance processes include a variety of key activities, for example,
promoting appropriate ethics and values. Which of the following is another appropriate
governance activity? - ANS-Overseeing risk management and controlPer
Implementation Guide 2110, governance processes include overseeing risk
management and control along with communicating risk and control information to
appropriate areas within the organization.
Control - ANS-Any action taken by management, the board, or other parties to manage
risk and increase the likelihood that established objectives and goals will be achieved.
Management plans, organizes, and directs the performance of sufficient actions to
provide reasonable assurance that objectives and goals will be achieved."
During an advisory engagement regarding the organization's sustainable development
program, the internal audit activity discovered that the organization's objectives included
reducing waste, minimizing energy use, meeting carbon emissions goals, and using
water responsibly. Which additional objective is internal audit most likely to recommend
that the organization consider? - ANS-Reinvesting in local communities, protecting
human rights
Governance - ANS-"The combination of processes and structures implemented by the
board to inform, direct, manage, and monitor the activities of the organization toward the
achievement of its objectives."
Governance is best described as which of the following? - ANS-Processes and
structures implemented by the board to inform, direct, manage, and monitor the
activities of the organization toward the achievement of its objectives.
If the organizational culture is more collegiate and people work more toward the
objectives of cross-functional business processes, what would be the key benefit of
defining the audit universe by cross-functional business processes? - ANS-Managers
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