CGRC Audit Management 4

Question 1

When preparing an audit report, the finding format that most effectively drives management action includes:

Accepted Answer

Condition, criteria, cause, effect, and recommendation

Answer

The five-element finding format (condition, criteria, cause, effect, recommendation) provides the complete context needed for management to understand and act on findings.

Question 2

Which risk assessment approach ranks risks by multiplying the likelihood of occurrence by the magnitude of impact?

Accepted Answer

Quantitative risk scoring

Answer

Quantitative risk scoring assigns numerical values to likelihood and impact and multiplies them to produce a risk score for prioritization.

Question 3

An audit committee's primary oversight responsibility related to internal audit includes:

Accepted Answer

Reviewing and approving the internal audit charter and annual audit plan

Answer

The audit committee provides governance oversight by approving the charter and plan, ensuring the audit function has appropriate scope and resources.

Question 4

Which scenario represents an impairment to auditor objectivity?

Accepted Answer

An auditor previously managed the department now being audited

Answer

An auditor who previously managed the area under review has a self-review threat that impairs their objectivity until sufficient time has passed.

Question 5

In continuous auditing, which technology enables real-time monitoring of transactions against predefined thresholds?

Accepted Answer

Automated control monitoring (ACM) tools

Answer

Automated control monitoring tools evaluate transactions continuously against established rules and immediately flag exceptions for auditor review.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Audit Management 4