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Question 1

ISO uses the concept of uncertainty as the driver and rationale for risk management.

Options :

A : True

B : False

Answer: A

Question 2

Where does an internal auditor typically spend most of his time auditing today?

Options :

A : People

B : Process

C : Technology

D : Infrastructure

Answer: B

Question 3

Which risk identification involves creating alternative ways to achieve an objective?

Options :

A : Scenario Based

B : Objectives-Based

Answer: A

Question 4

How does a pure risk differ from a speculative risk?

Options :

A : A pure risk always has an environmental cause whereas a speculative risk always involves human error.

B : A pure risk can be measured in probability terms whereas a speculative risk cannot.

C : A pure risk is not subject to regulatory control but a speculative risk always is.

D : A pure risk only leads to the possibility of a loss, whereas a speculative risk may lead to a gain.

Answer: D

Question 5

Risk management takes human and cultural factors into account.

Options :

A : True

B : False

Answer: A