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NEW QUESTION: 1
According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations?
I. The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments.
II. Treasury management has not instituted any risk management policies.
III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent.
IV. The external auditors have indicated some difficulties in obtaining account confirmations.
A. I and II only
B. I and IV only
C. I, II, and III only
D. II, III, and IV only
Answer: C

NEW QUESTION: 2
Which of the following incidents are reported under CAT -5 federal agency category?
A. Exercise/ Network Defense Testing
B. Malicious code
C. Scans/ probes/ Attempted Access
D. Denial of Service DoS
Answer: C

NEW QUESTION: 3
Which of the following best allows risk management results to be used knowledgeably?
A. An uncertainty analysis
B. A vulnerability analysis
C. A likelihood assessment
D. A threat identification
Answer: A
Explanation:
Risk management consists of two primary and one underlying activity; risk assessment and risk mitigation are the primary activities and uncertainty analysis is the underlying one. After having performed risk assessment and mitigation, an uncertainty analysis should be performed. Risk management must often rely on speculation, best guesses, incomplete data, and many unproven assumptions. A documented uncertainty analysis allows the risk management results to be used knowledgeably. A vulnerability analysis, likelihood assessment and threat identification are all parts of the collection and analysis of data part of the risk assessment, one of the primary activities of risk management.
Source: SWANSON, Marianne & GUTTMAN, Barbara, National Institute of Standards and Technology (NIST), NIST Special Publication 800-14, Generally Accepted Principles and Practices for Securing Information Technology Systems, September 1996 (pages 19-21).