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NO.1 In publicly held companies,management often requires the internal audit activity's involvement
with quarterly financial statements that are made public and used internally. Which of the following
is generally not a reason for such involvement?
A. The Standards state that internal auditors should be involved with reviewing quarterly financial
statements.
B. Management may be concerned about its reputation in the financial markets.
C. Management may perceive that having quarterly financial information examined by the internal
auditors enhances its value for internal decision making.
D. Management may be concerned about potential penalties that could occur if quarterly financial
statements are misstated.
Answer: A

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NO.2 Which of the following is not a role of the internal audit activity in facilitating risk identification
and evaluation?
A. Providing assurance that risks are evaluated correctly.
B. Recommending accountability for risk management.
C. Supporting managers to identify ways to mitigate risks.
D. Evaluating risk management processes.
Answer: B

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