Applying ISO 31000; which of the following is part of the external context for risk management?
ISO 31000 Context: ISO 31000 provides guidelines on risk management, emphasizing the importance of understanding the external context.
External Context: This includes external factors such as regulatory and competitive environments that can impact the organization's risk profile.
Regulatory Environment: Understanding regulations helps the organization ensure compliance and avoid legal risks.
Competitive Environment: Analyzing the competitive environment allows the organization to anticipate market changes and manage competitive risks.
ISO 31000 Risk Management Guidelines.
According to IIA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?
Professional Care: Ensuring that internal auditors demonstrate due professional care involves establishing clear policies and procedures that guide their activities.
Guidance and Standards: These policies and procedures help ensure that the internal audit activity adheres to professional standards and best practices.
Standard Compliance: According to the IIA's Performance Standard 2040 -- Policies and Procedures, the CAE must establish policies and procedures to guide the internal audit activity.
Quality Assurance: Properly developed policies and procedures contribute to the overall quality and effectiveness of the internal audit activity, ensuring that engagements are conducted with due professional care.
IIA Standard 2040 -- Policies and Procedures .
An organization invests excess short-term cash in trading securities Which of the following actions should an internal auditor take to test the valuation of those securities'*
Testing Valuation: The valuation of trading securities requires comparing their carrying value with current market prices to ensure accuracy.
Market Quotations: Current market quotations provide the most reliable and up-to-date information on the fair value of securities.
Accounting Standards: This approach is consistent with accounting standards that require securities to be reported at fair value, reflecting any unrealized gains or losses.
Verification Process: Comparing the carrying value with market quotations helps verify that the securities are appropriately valued on the financial statements.
International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) regarding fair value measurement.
Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?
Professional Responsibility: Internal auditors are expected to demonstrate their commitment to professional standards and ethics.
Code of Ethics: The IIA's Code of Ethics outlines principles that internal auditors must follow, including integrity, objectivity, confidentiality, and competency.
Annual Declaration: Signing an annual declaration reinforces the auditor's commitment to these principles and ensures ongoing adherence to the professional standards.
Demonstration of Due Care: By signing this declaration, auditors formally acknowledge their responsibility to uphold ethical standards, which is a demonstration of due professional care.
The IIA's Code of Ethics.
The IIA's International Standards for the Professional Practice of Internal Auditing.
An organization invests excess short-term cash in trading securities Which of the following actions should an internal auditor take to test the valuation of those securities'*
Testing Valuation: The valuation of trading securities requires comparing their carrying value with current market prices to ensure accuracy.
Market Quotations: Current market quotations provide the most reliable and up-to-date information on the fair value of securities.
Accounting Standards: This approach is consistent with accounting standards that require securities to be reported at fair value, reflecting any unrealized gains or losses.
Verification Process: Comparing the carrying value with market quotations helps verify that the securities are appropriately valued on the financial statements.
International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) regarding fair value measurement.
Candra
3 days agoCharlette
2 months ago