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Download Risk Management Exam Dumps
NEW QUESTION 42
As part of risk assessment exercise for a low-cost airline you are requested to match the risks listed below with the most approriate method of minimising or dealing with each risk.
Answer:
Explanation:
NEW QUESTION 43
Which of the following are objectives of the audit planning procedure?
- A. To set out how audit objectives will be achieved.
- B. To work out how audit evidence will be obtained.
- C. To perform analytical review to identify possible areas for investigation.
- D. To perform substantive tests.
- E. To work out the time and resources required for the audit.
Answer: A,B,E
NEW QUESTION 44
M, a manufacturing company, has had some problems with defects in one of the main products it produces.
This product has been made by the company for many years and is very profitable. Last month it had over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability.
Which of the following controls could M introduce to reduce defects and also increase profitability?
- A. M could introduce a procedure where quality control staff sign a form at the end of each day to say they have examined 1 in 10 products for defects and they are satisfied with the quality.
- B. M could check all employees qualifications to ensure they are qualified for their jobs.
- C. M could increase the number of quality control staff.
- D. M could service machinery at least once a month as recommended by the machinery supplier.
- E. The production director could examine one in every 10 products and sign a form to say they are satisfactory.
Answer: A,B,D
NEW QUESTION 45
Company X has been advised by its internal audit team that it should have a fraud response policy A is a new member in the internal audit team and he does not see why this would help to prevent fraud and has asked for an explanation Which TWO of the following would be included in this explanation? It would act as a deterrent and help prevent staff from committing fraud
- A. It would be part of the internal control system of the company
- B. It would lay down processes and procedures that internal audit should follow if they suspect fraud
- C. It would clarify the role of various staff in detecting fraud
- D. It would show that the company is taking the risk of fraud seriously.
Answer: A,B
NEW QUESTION 46
YGH has recently completed a post completion audit on a five year contract that has only recently come to a conclusion. The main finding was that the project delivered most of the expected benefits, but that it cost significantly more to implement than had been anticipated at the project appraisal stage. YGH would not have proceeded if the true cost had been known at that stage.
The project was the responsibility of the production department, which is presently managed by G.
When the project was proposed, the production department was managed by H.
H is now YGH's Director of Operations.
How should the finding from this post completion audit be interpreted?
- A. H should be held accountable for the overspend on the project.
- B. YGH should consider introducing more detailed checking of the assumptions underlying the costs of future projects.
- C. G should be held accountable for the overspend on the project.
- D. The production department should not be granted funding for future projects unless there are compelling reasons to proceed.
Answer: B
NEW QUESTION 47
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