Exam

Question 1

by a governing body to stake-
holders for organizational oversight through
integrity, leadership, and transparency.

Answer 1

Accountability

Question 2

(including managing risk) by manage-
ment to achieve the objectives of the organization through risk-based decision-making and application of resources.

Answer 2

Actions

Question 3

by an independent internal audit function to provide clarity and confidence and to promote and facilitate continuous improvement through rigorous inquiry and insightful communication.

Answer 3

Assurance and advice

Question 4

A considered process that includes
analysis, planning, action, monitoring,
and review, and takes account of
potential impacts of uncertainty on objectives.

Answer 4

Risk-based decision-making

Question 5

Independent confirmation and confidence.

Answer 5

Assurance

Question 6

Delegates responsibility and provides resources to management to achieve the objectives of the organization while ensuring legal, regulatory, and ethical expectations are met.

Answer 6

Governing body

Question 7

Establishes and oversees an independent, objective, and competent internal audit function to provide
clarity and confidence on progress toward the achievement of objectives.

Answer 7

Governing body

Question 8

Its responsibility is to achieve organizational objectives comprises both first and second line roles.

Answer 8

Management

Question 9

An organized group of
activities, resources, and people
working toward shared goals.

Answer 9

Organization

Question 10

Those groups and
individuals whose interests are served
or impacted by the organization.

Answer 10

Stakeholders

Question 11

Those individuals
who are accountable to stakeholders for the success of the organization.

Answer 11

Governing body

Question 12

Those individuals, teams,
and support functions assigned to
provide products and/or services to the
organization’s clients.

Answer 12

Management

Question 13

Those individuals operating independently from manage-
ment to provide assurance and insight
on the adequacy and effectiveness of
governance and the management of risk (including internal control).

Answer 13

Internal audit

Question 14

helps organizations identify
structures and processes that best assist the achievement
of objectives and facilitate strong governance and risk management

Answer 14

Three Lines Model

Question 15

The model previously known as the Three Lines
of Defense.

Answer 15

Three Lines Model

Question 16

Processes designed to provide reasonable confidence over the achievement of objectives.

Answer 16

Internal control

Question 17

are human undertakings, operating in an increasingly uncertain, complex, interconnected, and volatile
world.

Answer 17

Organization

Question 18

are most directly aligned with the delivery of products and/or services to clients of the organization, and include the roles of support functions

Answer 18

First line roles

Question 19

provide assistance with managing risk.

Answer 19

Second line roles

Question 20

Internal audit provides independent and objective assurance and advice on the adequacy and effectiveness of governance and risk management

Answer 20

Third line roles

Question 21

It achieves this through the competent application of systematic and
disciplined processes, expertise, and insight. It reports its findings to management and the governing body to promote and facilitate continuous improvement. In doing so, it may consider assurance from other internal
and external providers

Answer 21

Third line roles

Question 22

Internal audit’s independence from the responsibilities of management is critical to its objectivity, authority,
and credibility.

Answer 22

Third line independence

Question 23

It is established through: accountability to the governing body; unfettered access to people, resources, and data needed to complete its work; and freedom from bias or interference in the planning and delivery of audit services.

Answer 23

Third line independence

Question 24

All roles working together collectively contribute to the creation and protection of value when they are aligned with each other and with the prioritized interests of stakeholders.

Answer 24

Creating and protecting value

Question 25

Alignment of activities is achieved through communication, cooperation, and collaboration. This ensures the reliability, coherence, and transparency of information needed for risk-based decision making.

Answer 25

Creating and protecting value

Question 26

Accepts accountability to stakeholders for oversight of the organization.

Answer 26

Governing body

Question 27

Engages with stakeholders to monitor their interests and communicate transparently on the achievement of objectives.

Answer 27

Governing body

Question 28

Leads and directs actions (including managing risk) and application of resources to achieve the objectives of the organization.

Answer 28

First line roles

Question 29

Maintains a continuous dialogue with the governing body and reports on: planned, actual, and expected outcomes linked to the objectives of the organization; and risk.

Answer 29

First line roles

Question 30

Provides complementary expertise, support, monitoring, and challenge related to the management of risk

Answer 30

Second line roles

Question 31

Provides analysis and reports on the adequacy and effectiveness of risk management (including internal control).

Answer 31

Second line roles

Question 32

Maintains primary accountability to the governing body and independence from the responsibilities of management.

Answer 32

Internal audit

Question 33

Communicates independent and objective assurance and advice to management and the governing body on the adequacy and effectiveness of governance and risk management (including internal control) to support the achievement of organizational objectives and to promote and facilitate continuous improvement.

Answer 33

Internal audit

Question 34

Satisfy legislative and regulatory expectations that serve to protect the interests of stakeholders.

Answer 34

External assurance provider

Question 35

Satisfy requests by management and the governing body to complement internal sources of assurance.

Answer 35

External assurance provider

Question 36

Nurtures a culture promoting ethical behavior and accountability.

Answer 36

Governing body

Question 37

Establishes structures and processes for governance, including auxiliary committees as required.

Answer 37

Governing body

Question 38

Delegates responsibility and provides resources to management for achieving the objectives of the organization.

Answer 38

Governing body

Question 39

Determines organizational appetite for risk and exercises oversight of risk management (including internal control).

Answer 39

Governing body

Question 40

Establishes and oversees an independent, objective, and competent internal audit function.

Answer 40

Governing body

Question 41

Maintains oversight of compliance with legal, regulatory, and ethical expectations.

Answer 41

Governing body

Question 42

Establishes and maintains appropriate structures and processes for the management of operations and risk (including internal control).

Answer 42

First line roles

Question 43

Ensures compliance with legal, regulatory, and ethical expectations.

Answer 43

First line roles

Question 44

Reports impairments to independence and objectivity to the governing body and implements safeguards as required.

Answer 44

Internal audit

Question 45

typically sets the direction of the organization by defining the vision, mission, values, and organizational appetite for risk.

Answer 45

Governing body

Question 46

The most senior individual in the organization with responsibility over operations.

Answer 46

Chief Executive Officer (CEO)

Question 47

is accountable to, and sometimes described as being the “eyes and ears” of the governing body.

Answer 47

Internal audit

Question 48

responsible for oversight of internal audit, which requires: ensuring an independent internal audit function is established, including the hiring and firing of the Chief Audit Executive (CAE); serving as the primary reporting line for the CAE4; approving and resourcing the audit plan; receiving and considering reports from the CAE; and enabling free access by the CAE to the governing body, including private sessions without the presence of management.

Answer 48

Governing body

Question 49

The most senior individual in the organization with responsibility for internal audit services, often known as the Head of Internal Audit or similar title.

Answer 49

Chief Audit Executive (CAE)

Question 50

is most effective when it is adapted to align with the objectives and circumstances of the organization. How an organization is structured and how roles are assigned are matters for management and the governing body to determine.

Answer 50

Three lines model