Question 1

1. Which of the following represents the greatest risk?

	The director of IT (a key employee) resigned
	An IT hardware failure occurred
	The company?s database is corrupted
	The president of the company was fired for embezzlement

Question 3

1. Which of the following generally reviews and documents ERM?

	Management
	Internal auditors
	Board of directors
	External auditors

Question 4

1. Which of the following ERM components are the external auditors most concerned with?

	Reporting and operations
	Reporting and compliance
	Compliance and operations
	Compliance and strategy

Question 5

1. Which of the following represents the greatest risk?

	The loss of a substantial customer
	Excessive turnover of management
	No audit committee
	Poor cash flow

Question 6

1. Which best describes the definition of the audit universe?

	All auditable components of an entity
	All Account balances
	That which is documented
	None of the above is correct

Question 7

1. Inherent risk, as defined by ERM, is assessed in relation to

	Materiality and business risk
	Business risk and detection risk
	Audit risk and materiality
	Impact and likelihood of occurrence

1. What best describes residual risk?

	Risk that cannot be mitigated
	Risks that, if properly managed, will make the organization successful in the achievement of its objectives or, if not well managed, it (the organization) will not achieve its objectives
	A component of overall audit risk
	None of the above describes residual risk

Question 9

1. Which statement is false?

	Risk assessment involves both qualitative and quantitative elements
	ERM is the responsibility of management
	A company is not auditable without an ERM system
	All of the above are true statements

Question 10

1. Which of the following is most essential for ERM?

	Internal audit staff
	An audit committee
	A positive control environment
	Tests of internal control

Question 1 1. Which of the following represents the greatest risk? The director of IT (a key employee) resigned An IT hardware failure occurred The company's database is corrupted The president of the company was fired for embezzlement Question 3 1. Which of the following generally reviews and documents ERM? Management Internal auditors Board of directors External auditors Question 4 1. Which of the following ERM components are the external auditors most concerned with? Reporting and operations Reporting and compliance Compliance and operations Compliance and strategy Question 5 1. Which of the following represents the greatest risk? The loss of a substantial customer Excessive turnover of management No audit committee Poor cash flow Question 6 1. Which best describes the definition of the audit universe? All auditable components of an entity All Account balances That which is documented None of the above is correct Question 7 1. Inherent risk, as defined by ERM, is assessed in relation to Materiality and business risk Business risk and detection risk Audit risk and materiality Impact and likelihood of occurrence 8. What best describes residual risk? Risk that cannot be mitigated Risks that, if properly managed, will make the organization successful in the achievement of its objectives or, if not well managed, it (the organization) will not achieve its objectives A component of overall audit risk None of the above describes residual risk Question 9 1. Which statement is false? Risk assessment involves both qualitative and quantitative elements ERM is the responsibility of management A company is not auditable without an ERM system All of the above are true statements Question 10 1. Which of the following is most essential for ERM? Internal audit staff An audit committee A positive control environment Tests of internal control