Shareholders

Society.

Customers.

Management.

The purchasing power of money declines.

There is a shortage of essential raw materials and costs are rising.

The rate of unemployment decreases.

Potential national income exceeds actual national income.

 True

 False

Enterprise risk management is subject to management override.

Collusion among two or more individuals can result in enterprise risk management failure.

Companies cannot avoid risk.

Risk relates to the future that is uncertain.

These standards address the engagement team's focus on governance; risk management; and control processes associated with internal auditing.

These standards address the internal audit activity's focus on planning the engagement; including the engagement's objectives; scope; timing; and resource allocations.

These standards primarily address the chief audit executive's responsibilities for overseeing the internal audit activity and for adding value to the organization.

These standards address the internal auditor's responsibilities for obtaining an adequate basis for conclusions to achieve the engagement's objectives.

 False

 True

The control environment.

Monitoring.

Control activities.

Information and communication.

 False

 True

A perfect market.

A price ceiling.

A price floor.

A monopoly.

 True

 False

 True

 False

Excess inSupply; Shortage in Demand

Shortage in Supply; Excess in Demand

Shortage in Supply; Shortage in Demand

Excess in Supply; Excess in Demand

 True

 False

 True

 False