AUDITING EXAM QUESTIONS AND VERIFIED SOLUTIONS LATEST UPDATE 2024 ALREADY PASSED
Which is not part of the mandatory guidance for the International Professional Practices Framework?
Code of Ethics
Implementation Guidance
Definition of Internal Auditing
International Standards for the Pr...
An internal auditor who knowingly is a party to an illegal activity violates which rule of conduct?
Objectivity
Confidentiality
,Integrity
Competency - Answers Integrity
An internal auditor who accepts anything that may impair his or her independence violates which rule of
conduct?
Objectivity
Integrity
Confidentiality
Competency - Answers Objectivity
An internal auditor who does not continue to improve her or his proficiency violates which rule of
conduct?
Integrity
Competency
Confidentiality
Objectivity - Answers Competency
An internal auditor who uses information for personal gain violates which rule of conduct?
Objectivity
Confidentiality
Competency
Integrity - Answers Confidentiality
An internal auditor who does not disclose all material facts violates which rule of conduct?
Competency
Confidentiality
Integrity
Objectivity - Answers Objectivity
Which is not true regarding the Okurasho?
The group controlled Japan's stock market
,For hundreds of years it was responsible for overseeing Japan's economic development
The group effectively controlled Japan's banking system
The group advised the Japanese emperor on major economic decisions - Answers The group controlled
Japan's stock market
Which is not true regarding the Ministry of Finance (MOF)?
The MOF was controlled by the Okurasho
MOF hand picked individuals to serve in key executive positions in large accounting firms
The MOF was not held responsible for huge government bailouts
The MOF controlled large accounting firms - Answers The MOF was not held responsible for huge
government bailouts
Low audit fees in Japan resulted in all of the following EXCEPT:
Less profitable engagements for Japanese accounting firms
Improved profitability for Japanese firms
Severe scope limitations on audits in Japan - Answers Improved profitability for Japanese firms
Some Japanese auditors subordinated their judgment to others due to all of the following EXCEPT:
Cultural emphasis on relationships
Low audit fee payments
Cultural emphasis on harmonious working practices - Answers Low audit fee payments
All of the following led to a credibility crisis for Japan's independent audit function EXCEPT:
Fraudulent accounting
Abrupt failures of financial institutions
MOF's failure to impose sanctions on the public accounting profession
New regulatory structure for the public accounting profession - Answers New regulatory structure for
the public accounting profession
Which is not a limitation of Enterprise Risk Management (ERM)?
Cost verses benefit
Management override
, Control circumvention by collusion
Errors, mistakes, or faulty judgment
Absolute assurance of achievement of entity objectives - Answers Absolute assurance of achievement
of entity objectives
Which is not a risk response of Enterprise Risk Management (ERM)?
Accept
Share or transfer
Reduce
Eliminate or avoid
Align mission with risk appetite - Answers Align mission with risk appetite
Enterprise Risk Management (ERM) attempts to maximize value in all of the following areas EXCEPT:
Helps strike an optimal balance between growth and return goals and related risks
Eliminates organizational uncertainty
Helps ensure compliance with laws and regulations
Helps ensure effective reporting
Helps avoid damage to reputation - Answers Eliminates organizational uncertainty
After the organization identifies events that may impact organizational objectives, the next step is to
Design risk responses for the event
Assess risk responses for the event
Assess likelihood of the event
Assess impact of the event - Answers Assess impact of the event
Contingency plans should be made for events for
High impact opportunities with a high likelihood of occurring
Low impact opportunities with a high likelihood of occurring
High impact threats with a low likelihood of occurring
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