Assessing risk culture

What are the core internal audit roles in regard to ERM

Giving assurance on the risk management processes and that risks are correctly evaluated

Evaluating risk management processes and reporting of key risks

All of these

Reviewing the management of key risks

Why shouldn’t internal audit set the risk appetite?

None of these

CEOs and the Board are ultimately held accountable for the risk management framework effectiveness

Because Internal Audit does not have a fiduciary duty

Because internal audit is limited to monitoring, examining, evaluating and reporting on risk management

Legitimate internal audit roles regarding risk management but with safeguards include

Evaluation of critical control systems

All of these

Advice in the design and improvement

Review and adequacy of the risk management process

How can Risk Management support internal audit?

By providing risk registers, list of controls associated with those risks, approach and methodology, potential exposure to control failure, consequences and likelihood of risk arising

By providing risk registers, list of controls associated with those risks, approach and methodology, potential litigation to control failure, consequences and likelihood risk impact

By providing risk registers, list of controls associated with those risks, approach and methodology, potential litigation to control failure, consequences and likelihood of risk arising

By providing risk registers, list of controls, approach and methodology, potential exposure to control failure, consequences and likelihood of risk arising

How can Internal Audit support Risk Appetite and Risk Tolerance reviews?

Internal Audit can support facilitating the discussion for the articulation of Risk Appetite and Risk Tolerance

Internal Audit must take decisions on risk responses or implement responses on management’s behalf

None of these

Internal Audit must set, approve the risk appetite, strategy and performance targets

Key components of effective audit planning are

Interview business function owners

Requesting information in advance

Planning what to audit, how much to audit and for how long, based on an internal audit risk assessment

Planning audit areas and number of activities

Why is internal audit automation important?

Because it reduces sample risk

Because it increases assurance

Because it improves efficiency, communication and visibility

Because it increases the level of testing

A factor widely considered to have been a driving force for the financial crisis of 2008 is

Weak organisational culture regarding risk

Inadequate attitude towards risk at the operational level

Insufficient detailed testing from IA regarding the operational risk

IA not having a clear enough involvement in the setting of risk appetite

One key risk regarding the audit of risk culture for a mature IA department is

Not having the correct communication channels to promote good risk culture

A lack of understanding of what risk culture is

Hindering objectivity by making a subjective assessment of culture

Opening the IA remit too wide and resulting in too broad an IA scope

An initial step towards effective risk culture review for IA could be

All of these

Incorporating a review of the 'tone at the top' to guide the audit scope for risk culture

Strengthening the culture within the IA department itself through training

Including 'culture' in the quarterly ERM dashboard

Assessing risk culture

What are the core internal audit roles in regard to ERM

Why shouldn’t internal audit set the risk appetite?

Legitimate internal audit roles regarding risk management but with safeguards include

How can Risk Management support internal audit?

How can Internal Audit support Risk Appetite and Risk Tolerance reviews?

Key components of effective audit planning are

Why is internal audit automation important?

A factor widely considered to have been a driving force for the financial crisis of 2008 is

One key risk regarding the audit of risk culture for a mature IA department is

An initial step towards effective risk culture review for IA could be

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Our sites

Useful links

Using this site

Contact us

Planned system updates