CGRC Audit Management 3

Question 1

Which of the following best describes 'audit universe'?

Accepted Answer

The complete inventory of auditable entities and activities within an organization

Answer

The audit universe encompasses all potential auditable areas, including processes, systems, departments, and locations.

Question 2

In audit risk model terms, detection risk is best managed by:

Accepted Answer

Adjusting the extent and nature of audit procedures

Answer

Detection risk—the risk that audit procedures fail to catch misstatements—is controlled by modifying audit procedures, not by changing underlying controls.

Question 3

Which type of audit opinion is issued when financial statements are fairly presented except for a specific, material issue?

Accepted Answer

Qualified opinion

Answer

A qualified opinion indicates that statements are fairly presented 'except for' a specific departure from the applicable financial reporting framework.

Question 4

Under IIA Standards, the internal audit function's independence is primarily safeguarded by:

Accepted Answer

Reporting functionally to the board or audit committee

Answer

Functional reporting to the board or audit committee preserves organizational independence by keeping internal audit free from management influence.

Question 5

What does 'sufficiency of audit evidence' mean?

Accepted Answer

There is enough evidence to support the audit conclusions

Answer

Sufficiency refers to the quantity of evidence—whether there is enough to draw reasonable audit conclusions.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Audit Management 3