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Question No. 1

Which of the following principles are common to both hierarchical and open organizationalstructures?

1. Employees at all levels should be empowered to make decisions.

2. A supervisor's span of control should not exceed seven subordinates.

3. Responsibility should be accompanied by adequate authority.

4. A superior cannot delegate the ultimate responsibility for results.

A. 1 and 2B. 1 and 4C. 2 and 3D. 3 and 4

Answer: D

Question No. 2

Senior management has decided to implement the Three Lines of Defense model for riskmanagement. Which of the following best describes senior management's duties with regard to thismodel?

A. Ensure compliance with the model.B. Identify management functions.C. Identify emerging issues.D. Set goals for implementation.

Answer: A

Question No. 3

Which of the following roles would be least appropriate for the internal audit activity to undertakewith regard to an organization's corporate social responsibility (CSR) program?

A. Consult on project design and implementation of the CSR program.B. Serve as an advisor on internal controls related to CSR.C. Identify and prioritize the CSR issues that are important to the organization.D. Evaluate the effectiveness of the organization's CSR efforts.

Answer: C

Question No. 4

Which of the following COSO internal control framework components encompasses establishingstructures, reporting lines, authorities, and responsibilities?

A. Control environment.B. Control activities.C. Information and communication.D. Monitoring.

Answer: A

Question No. 5

According to IIA guidance, which of the following corporate social responsibility (CSR) evaluationactivities may be performed by the internal audit activity?

1. Consult on CSR program design and implementation.

2. Serve as an advisor on CSR governance and risk management.

3. Review third parties for contractual compliance with CSR terms.

4. Identify and mitigate risks to help meet the CSR program objectives.

A. 1, 2, and 3B. 1, 2, and 4C. 1, 3, and 4D. 2, 3, and 4

Answer: A