20. An assurance engagement of risk management processes by the internal audit activity should start by doing all of the following, except a. Identifying inherent risks and residual risks b. Gaining knowledge of the risk appetite, risk capacity, and risk tolerance c. Understanding the internal and external environment d. Proposing revision of the entity's mission, strategy, and objectives 21. Which of the following is not one of the formal components of COSO ERM Framework? a. Consider how objectives can be achieved by assessing the likelihood and probability of events that may affect the achievement of objectives b. An entity's tone at the top, ethical values, and operating style will help management establish a risk management philosophy and risk appetite c. Management must consider internal and external events that create threats and opportunities d. Risk appetite is defined and communicated as part of the entity's mission statement 24. Review or audit of risk management processes has three primary goals. Which of the following is not one of the three goals? a. To identify changes in the organization's objectives and environment and ensure enlignment b. To identify and repair weaknesses and faults c. To determine that the organization is achieving its goals (because risk management is working) d. To avoid impugning the reputation of top management
20. An assurance engagement of risk management processes by the internal audit activity should start by doing all of the following, except a. Identifying inherent risks and residual risks b. Gaining knowledge of the risk appetite, risk capacity, and risk tolerance c. Understanding the internal and external environment d. Proposing revision of the entity's mission, strategy, and objectives 21. Which of the following is not one of the formal components of COSO ERM Framework? a. Consider how objectives can be achieved by assessing the likelihood and probability of events that may affect the achievement of objectives b. An entity's tone at the top, ethical values, and operating style will help management establish a risk management philosophy and risk appetite c. Management must consider internal and external events that create threats and opportunities d. Risk appetite is defined and communicated as part of the entity's mission statement 24. Review or audit of risk management processes has three primary goals. Which of the following is not one of the three goals? a. To identify changes in the organization's objectives and environment and ensure enlignment b. To identify and repair weaknesses and faults c. To determine that the organization is achieving its goals (because risk management is working) d. To avoid impugning the reputation of top management
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
20. An assurance engagement of risk management processes by the internal audit activity should start by doing all of the following, except
a. Identifying inherent risks and residual risks
b. Gaining knowledge of the risk appetite, risk capacity, and risk tolerance
c. Understanding the internal and external environment
d. Proposing revision of the entity's mission, strategy, and objectives
21. Which of the following is not one of the formal components of COSO ERM Framework?
a. Consider how objectives can be achieved by assessing the likelihood and probability of events that may affect the achievement of objectives
b. An entity's tone at the top, ethical values, and operating style will help management establish a risk management philosophy and risk appetite
c. Management must consider internal and external events that create threats and opportunities
d. Risk appetite is defined and communicated as part of the entity's mission statement
24. Review or audit of risk management processes has three primary goals. Which of the following is not one of the three goals?
a. To identify changes in the organization's objectives and environment and ensure enlignment
b. To identify and repair weaknesses and faults
c. To determine that the organization is achieving its goals (because risk management is working)
d. To avoid impugning the reputation of top management
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