The Standards for the Professional Practice of Internal Audit of the Institute

question 11

Multiple Choice

The Standards for the Professional Practice of Internal Audit of the Institute of Internal Auditors (IIA) is classified in three major categories.Which of the following is not one of these categories?

• A)Attribute standards.
• B)Performance standards.
• C)Governance standards.
• D)Implementation standards.

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Definitions:

Certainty Equivalent Factor

A concept used in finance to adjust the future cash flows of an investment to account for risk, essentially converting them into a guaranteed cash flow that an investor would accept in place of holding a risky asset.

Value Range

The spread between the highest and lowest values of a financial asset, indicating its volatility and potential for profit or loss.

Certainty Approach Method

A technique used in decision-making that involves evaluating the outcomes of decisions assuming that no uncertainty exists in the operational environment.

Annual Cash flows

The total amount of money being transferred in and out of a business over the course of a year.