Arm 400 Exam Practice Questions And Answers 100% Solved

Which one of the following best describes why the Institute for Internal Auditors (IIA) has designed standards addressing the need for internal audit to evaluate the effectiveness of risk management? A. Audits are objective and independent of the politics of an organization. A pronouncement assists the auditor by defining review criteria. B. Audits may be self-serving to an organization depending on the experience level of an auditor. By indicating specific criteria, an auditor should be able to conduct a valid audit. C. Audits are conducted under diverse legal and cultural environments. Requiring an auditor to validate particular points ensures that auditors and their activities meet their responsibilities. D. Audits are conducted annually in many organizations. Requiring an auditor to validate the findings of prior years provides a comfort level to stakeholders. {Ans: C}Risk management professionals must collaborate with data analysts during which two steps of the risk management process? A. Treat risks and monitor risk treatments B. Scan the environment and analyze risks C. Analyze risks and monitor risk treatments D. Identify risks and treat risks {Ans: C}It is necessary to define functions that should be performed by internal audit rather than the enterprise risk management (ERM) team