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Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?
A. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
B. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.
C. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.
D. Management may be concerned about its reputation in the financial markets.
Answer: C
NEW QUESTION: 2
Which of the following statements is true about exposure factor?
A. It is defined as the cost related to a single realized risk against a particular asset.
B. It is defined as the expected frequency of occurrence of a particular threat or risk in a singl e year.
C. It is defined as the yearly cost of all instances of a particular threat against a particular ass et.
D. It is defined as the percentage of loss experienced by an organization when a particular asset is violated by a realized risk.
Answer: D
NEW QUESTION: 3
A. Option A
B. Option C
C. Option D
D. Option B
Answer: C
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