1. The COSO-based audit approach should not override which of the following?

1. Risk-based approach.
2. Transaction-based
approach.
3. Management-based
approach.
4. Audit committee–based
approach.

Correct A. The COSO-based audit approach should not override the risk-
based audit approach where the latter should receive high priority. Where
there are gaps, the two approaches should be reconciled (IIA Standard
2130—Control).
Incorrect. A transaction-based approach can be overridden.
Incorrect. A management-based approach can be overridden.
Incorrect. The audit committee would not be involved in the detailed audit
approaches.

Which of the following characteristics of big data is the main technical driver of
investment in big data?
Volume
Velocity
Veracity
Variety

Incorrect. Volume is the amount of data being created is big compared to

traditional non-big data sources. Volume has nothing to do with the
investment.
Incorrect. Velocity means data is being generated extremely quickly and
continuously with greater speed. Velocity has nothing to do with the
investment.
Incorrect. Veracity means data must be able to be verified based on both
accuracy and context. Veracity has nothing to do with the investment.
Correct. Variety is the main technical driver of investment in big data because
more variety means more insights, more decisions, and more opportunities.
The variety of data comes from all types of data formats, both internally and
externally.

Which of the following is the ultimate goal of shareholder and investor communications?
Honesty.
Consistency.
Clarity.
Effectiveness.

Correct. Management honesty is the ultimate goal of shareholder and investor

communications, although the communications should provide consistency,
clarity, candor, and effectiveness. Corporations should consider candor, need
for timely disclosure, and effective use of technology. However, the ultimate
goal of shareholder and investor communications is honest, intelligible,
meaningful, and timely and broadly disseminated information (IIA Standard
2110—Governance).
Incorrect. This is not the ultimate goal.
Incorrect. This is not the ultimate goal.
Incorrect. This is not the ultimate goal.

An auditor's objectivity could be compromised in all of the following situations except:

A conflict of interest.
Auditee familiarity with auditor due to lack of rotation in
assignments.
Auditor assumption of operational duties on a temporary basis.
Reliance on outside expert opinion when appropriate.