CGRC Audit Management 5

Question 1

Which phase of the audit lifecycle involves confirming the audit's scope, objectives, and approach with management before fieldwork begins?

Accepted Answer

Preliminary survey / planning meeting

Answer

The planning meeting (sometimes called an entrance conference) aligns auditor and management expectations before substantive testing starts.

Question 2

A walk-through procedure is performed primarily to:

Accepted Answer

Confirm that a process operates as described and that controls are in place

Answer

Walk-throughs trace one or a few transactions end-to-end to verify that the documented process and controls actually function as described.

Question 3

Under COSO Internal Control framework, the component that focuses on monitoring whether controls are operating effectively over time is:

Accepted Answer

Monitoring activities

Answer

Monitoring activities involve ongoing evaluations and separate evaluations to ascertain whether the components of internal control are present and functioning.

Question 4

Which type of control test provides the strongest evidence that a control is operating effectively?

Accepted Answer

Reperformance of the control by the auditor

Answer

Reperformance—where the auditor independently executes the control—provides the highest level of assurance about control effectiveness.

Question 5

An auditor is assessing IT general controls (ITGCs). Which area is NOT typically covered by ITGCs?

Accepted Answer

Application-level input validation rules for a specific business process

Answer

Application input validation is an application control specific to one system; ITGCs are pervasive controls that support the overall IT environment.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Audit Management 5