Certified Internal Auditor Risk Assessment & Management 3

Question 1

Which framework is most commonly referenced for enterprise risk management (ERM) in the United States?

Accepted Answer

COSO ERM Framework

Answer

The COSO Enterprise Risk Management—Integrating with Strategy and Performance framework is the predominant ERM standard in the U.S.

Question 2

An internal auditor assessing strategic risk should focus primarily on risks that could affect:

Accepted Answer

Achievement of long-term organizational objectives

Answer

Strategic risks threaten an organization's ability to achieve its high-level goals and long-term direction.

Question 3

Velocity of risk refers to:

Accepted Answer

How quickly a risk can impact the organization once triggered

Answer

Risk velocity measures how rapidly an event can manifest and cause harm, which affects the time available for detection and response.

Question 4

When auditing an ERM program, the internal auditor's role is best described as:

Accepted Answer

Providing objective assurance and consulting on the ERM process

Answer

Internal auditors provide independent assurance that the ERM process is effective and may offer consulting services, but must avoid owning or managing risk on behalf of management.

Question 5

A risk that arises from the potential for legal or regulatory sanctions due to non-compliance is classified as:

Accepted Answer

Compliance risk

Answer

Compliance risk is the exposure to fines, penalties, or legal action stemming from failure to adhere to laws, regulations, or internal policies.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Risk Assessment & Management 3