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NEW QUESTION # 26
A QUALIFIED assurance opinion or statement is
- A. An affirmative statement that subject matter conforms to the suitable criteria and is free from meaningful misunderstanding
- B. A statement that the assessment encountered some limitations in what can be concluded and outside of those limitations a positive or negative statement can be offered.
- C. A statement that the assessment didn't observe anything that makes us doubt whether subject matter conforms to the suitable criteria and is free from meaningful misunderstanding.
Answer: B
Explanation:
A QUALIFIED assurance opinion or statement indicates that the assessment encountered some limitations, and outside of those limitations, a positive or negative statement can be offered. This type of opinion acknowledges that there are constraints that affected the scope or completeness of the assessment, but within the areas that could be reviewed, the assurance provider can still offer a conclusion. It is a way to communicate the assurance provider's findings while being transparent about any limitations that were encountered.References:
* IIA Standards for the Professional Practice of Internal Auditing
* AICPA Auditing Standards
NEW QUESTION # 27
When planning an Assessment, it is important to
- A. NOT include the personnel who perform the work being assessed. They will pollute the process.
- B. INCLUDE the personnel who perform the work being assessed. They will help to inform Assessment staff and help to adjust parameters if necessary.
Answer: B
Explanation:
Including the personnel who perform the work being assessed in the planning process is important because they possess valuable insights and knowledge about the processes and controls in place. Their involvement helps to ensure that the assessment is accurately scoped and relevant parameters are set. They can provide context and clarify operational details, contributing to a more effective and targeted assessment. Moreover, their engagement can foster a cooperativeenvironment and facilitate smoother assessment execution.
References:
* ISO 19011:2018 - Guidelines for auditing management systems
* COSO Internal Control - Integrated Framework
NEW QUESTION # 28
The two kinds of PROACTIVE controls are
- A. training and education
- B. access and system
- C. promoting and preventive
Answer: C
Explanation:
Proactive controls are those measures implemented to prevent undesirable events before they occur. Promoting controls are designed to encourage desired behaviors and outcomes, such as compliance with policies and procedures. Preventive controls are aimed at stopping undesirable events or actions before they happen, such as implementing security measures to prevent unauthorized access. Both types of controls are essential for effective risk management and ensuring the security and integrity of an organization's processes and systems.
References:
* COSO Internal Control - Integrated Framework
* ISO/IEC 27002:2013 - Information technology - Security techniques - Code of practice for information security controls
NEW QUESTION # 29
Follow-up on the implementation status of the recommendation from within the area being assessed is known as:
- A. Follow-Up by Targeted Review
- B. Follow-Up by Process Owner
- C. Follow-Up by Independent Assurance
Answer: B
Explanation:
Follow-up on the implementation status of the recommendation from within the area being assessed is known as Follow-Up by Process Owner. This approach involves the individuals responsible for the area under assessment reviewing the progress of implementing recommendations and controls. It ensures that those directly involved in the process take ownership and accountability for addressing the identified issues.
References:
* ISO 19011:2018 - Guidelines for auditing management systems
* COSO Internal Control - Integrated Framework
NEW QUESTION # 30
What level of assurance is required for an assessment?
- A. An assessment may target any level of assurance. The key is to define this level prior to setting the purpose and parameters.
- B. Low
- C. Medium
- D. High
Answer: A
Explanation:
The level of assurance required for an assessment can vary depending on the purpose, scope, and objectives of the assessment. It is crucial to define the desired level of assurance (low, medium, or high) before beginning the assessment to ensure that the approach, methodology, and resources allocated are appropriate. This helps in setting clear expectations and aligning the assessment process with the organization's risk tolerance and regulatory requirements.References:
* ISO 19011:2018 - Guidelines for auditing management systems
* COSO Enterprise Risk Management - Integrating with Strategy and Performance
NEW QUESTION # 31
Follow up should be restricted to the recommendations and action plan
- A. True. Only follow-up on planned actions and controls.
- B. False. Follow-Up should target the underlying risk. If the planned actions and controls are working, then the follow-up should identify and recommend changes.
Answer: B
Explanation:
Follow-up should not be restricted to the recommendations and action plan alone. It should also target the underlying risk to ensure that the actions and controls implemented are effectively mitigating the identified risks. If the follow-up reveals that the planned actions and controls are not working as intended, it is essential to identify and recommend necessary changes to address the underlying risk adequately. This approach ensures that the root causes of issues are addressed and that the organization is protected against potential risks.References:
* ISO 31000:2018 - Risk management - Guidelines
* COSO Enterprise Risk Management - Integrating with Strategy and Performance
NEW QUESTION # 32
Follow-up on the implementation status of the recommendation by assurance personnel is known as
- A. Follow-Up by Targeted Review
- B. Follow-Up by Independent Assurance
- C. Follow-Up by Process Owner
Answer: B
Explanation:
Follow-up on the implementation status of recommendations by assurance personnel is known as Follow-Up by Independent Assurance. This process involves independent assurance providers reviewing the actions taken to address the recommendations and verifying that they have been implemented effectively. This follow-up ensures that issues identified during the assessment have been resolved and that improvements have been made.References:
* IIA Standards for the Professional Practice of Internal Auditing
* ISO 19011:2018 - Guidelines for auditing management systems
NEW QUESTION # 33
Which of these is defined as "externally directing, controlling and evaluating an entity, process or resource"
- A. Governance
- B. Management
- C. Assurance
Answer: A
Explanation:
Governance is defined as "externally directing, controlling and evaluating an entity, process, or resource". It involves establishing policies, and continuous monitoring of their proper implementation, by the members of the governing body of an organization. It ensures that the entity is operating effectively and in alignment with its objectives and regulatory requirements. Governance encompasses a wide range of activities, including strategic planning, decision-making, and oversight, all aimed at achieving the entity's goals while managing risk and ensuring compliance.References:
* ISO 38500:2015 - Information technology - Governance of IT for the organization
* OECD Principles of Corporate Governance
NEW QUESTION # 34
The key steps in the Assessment Process are
- A. Plan, Perform, Report and Follow-Up
- B. Select, Assess, Monitor and Improve
Answer: A
Explanation:
The key steps in the Assessment Process are Plan, Perform, Report, and Follow-Up. These steps provide a structured approach to conducting assessments, ensuring thorough evaluation and continuous improvement:
* Plan:Define the scope, objectives, and methodology.
* Perform:Execute the assessment according to the plan.
* Report:Document findings and provide recommendations.
* Follow-Up:Monitor the implementation of recommendations and improvements.
These steps help ensure assessments are systematic, objective, and effective in identifying areas for improvement.References:
* ISO 19011:2018 - Guidelines for auditing management systems
* COSO Internal Control - Integrated Framework
NEW QUESTION # 35
It is important to write the Assessment Report without the help of personnel who conduct the work being assessed
- A. True. Never involve those being assessed in anything.
- B. False. Always confirm observations and even recommendations because you might be mistaken.
Answer: B
Explanation:
It is important to confirm observations and recommendations with personnel who conduct the work being assessed. Engaging with them ensures accuracy and relevance in the findings and recommendations, as they provide context and insights that the assurance team might not have. This collaboration helps to avoid misunderstandings and ensures that the recommendations are practical and feasible for implementation.
References:
* ISO 19011:2018 - Guidelines for auditing management systems
* COSO Internal Control - Integrated Framework
NEW QUESTION # 36
When should Assessment Notification be announced?
- A. As late as possible in case there is fraud in the assessed area
- B. Depends on the Purpose and Parameters and whether fraud it suspected.
- C. As soon as possible to start planning
Answer: B
Explanation:
The timing of assessment notification should depend on the purpose and parameters of the assessment and whether fraud is suspected. In cases where fraud is suspected, notifying too early might allow those involved to conceal evidence. Conversely, early notification can facilitate better planning and coordination for assessments where fraud is not a concern. The decision should be based on the specific context and objectives of the assessment.References:
* ISO 19011:2018 - Guidelines for auditing management systems
* COSO Internal Control - Integrated Framework
NEW QUESTION # 37
Achieving Principled Performance means to:
- A. Recycle
- B. Be an ethical performer
- C. Reliably achieve objectives, address uncertainty and act with integrity
Answer: C
Explanation:
Achieving principled performance means reliably achieving objectives, addressing uncertainty, and acting with integrity. This concept integrates the management of performance, risk, and compliance to ensure that an organization not only meets its goals but does so ethically and sustainably. It involves creating a culture of accountability, transparency, and ethical behavior while systematically managing risks and ensuring compliance with relevant regulations and standards. Principled performance is about achieving success while maintaining high standards of integrity and responsibility.References:
* OCEG (Open Compliance and Ethics Group) Red Book GRC Capability Model
* ISO 37001:2016 - Anti-bribery management systems
NEW QUESTION # 38
Which two factors drive the potential level of assurance that an assurance provider may target?
- A. Freedom and Disinterest
- B. Independence and Freedom
- C. Competence and Objectivity
Answer: C
Explanation:
The two factors that drive the potential level of assurance an assurance provider may target are competence and objectivity. Competence refers to the assurance provider's knowledge, skills, and experience necessary to perform the assessment effectively. Objectivity refers to the assurance provider's impartiality and independence from the area being assessed, ensuring that the assessment is unbiased and credible. Both factors are essential for providing a reliable and accurate assurance.References:
* IIA Standards for the Professional Practice of Internal Auditing
* ISO 19011:2018 - Guidelines for auditing management systems
NEW QUESTION # 39
What are the dimensions of TOTAL Performance?
- A. Agility, Efficiency and Effectiveness
- B. Effectiveness, Resiliency, and Agility
- C. Effectiveness, Efficiency and Reponsiveness
Answer: B
Explanation:
The dimensions of TOTAL Performance are Effectiveness, Resiliency, and Agility. Effectiveness refers to achieving the desired outcomes. Resiliency is the ability to recover from setbacks and continue operations.
Agility is the capacity to adapt quickly to changes and new opportunities. These three dimensions collectively ensure that an organization can perform well under various conditions and sustain its success over time.
References:
* ISO 9001:2015 - Quality management systems - Requirements
* COSO Enterprise Risk Management - Integrating with Strategy and Performance
NEW QUESTION # 40
What are the common attributes of an assurance professional?
- A. Objectivity, competence and fallibilism
- B. Independence, objectivity and diligence
- C. Objectivity, independence and freedom
Answer: B
NEW QUESTION # 41
Which disciplines are integrated into GRC?
- A. Governance and Oversight
- B. All of these disciplines are integrated into GRC
- C. Information Privacy and Security
- D. Compliance and Ethics
- E. Audit and Assurance
- F. Risk and Decision Support
- G. Strategy and Performance Management
- H. Quality and Conformance
Answer: B
Explanation:
GRC (Governance, Risk, and Compliance) integrates multiple disciplines to create a cohesive approach to managing an organization's overall governance, risk management, and compliance with regulations. The integrated disciplines include:
Audit and Assurance: Ensuring internal controls are effective and compliance with laws and policies.
Governance and Oversight: Establishing frameworks and policies to guide the organization.
Strategy and Performance Management: Aligning risk management and compliance with strategic objectives.
Quality and Conformance: Ensuring products/services meet regulatory and customer standards.
Information Privacy and Security: Protecting sensitive data and ensuring information security.
Compliance and Ethics: Adhering to legal requirements and promoting ethical behavior.
Risk and Decision Support: Identifying, assessing, and mitigating risks to support decision-making.
The integration of these disciplines ensures a comprehensive approach to managing risks and achieving organizational objectives.
References:
OCEG GRC Capability Model (Red Book)
ISO 31000:2018 - Risk management - Guidelines
COSO Enterprise Risk Management - Integrating with Strategy and Performance
NEW QUESTION # 42
Being "effective" is best defined as
- A. Design Effectiveness and Operating Effectiveness
- B. High performance
- C. Getting the job done right
Answer: A
Explanation:
Being "effective" is best defined as a combination of design effectiveness and operating effectiveness. Design effectiveness refers to how well a control or process is structured to achieve its intended outcomes, while operating effectiveness assesses how well the control or process is functioning in practice. Together, these dimensions ensure that controls are not only well-designed but also effectively implemented and operational.
References:
* COSO Internal Control - Integrated Framework
* ISO 31000:2018 - Risk management - Guidelines
NEW QUESTION # 43
How would the following test be classified?
The Assurance Provider inspects a RACI matrix for inclusion of best practice content.
- A. Control test
- B. Substantive test
Answer: A
Explanation:
Inspecting a RACI (Responsible, Accountable, Consulted, Informed) matrix for inclusion of best practice content is classified as a control test. This test evaluates whether the RACI matrix, a control tool, is designed and implemented according to best practices. It assesses the completeness and appropriateness of the matrix in defining roles and responsibilities, which is an aspect of control effectiveness.
References:
COSO Internal Control - Integrated Framework
ISO 31000:2018 - Risk management - Guidelines
NEW QUESTION # 44
If (Inherent Risk x Control Risk) is low
- A. We should perform extra testing
- B. We may consider performing less testing
Answer: B
Explanation:
If the inherent risk and control risk are both low, we may consider performing less testing. Inherent risk refers to the risk of an event occurring without considering any controls, while control risk is the risk that controls will not prevent or detect the event. When both risks are low, it indicates that the likelihood of issues occurring and not being detected is minimal, allowing for a reduced level of testing. This approach helps in efficiently allocating resources while maintaining a reasonable level of assurance.References:
* AICPA Auditing Standards
* ISO 31000:2018 - Risk management - Guidelines
NEW QUESTION # 45
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