Importance of IA functionKey concepts of independent and objectivi.pdf

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Importance of IA function Key concepts of independent and objectivity Idea of governance of risk control 3 functions Assurance and consulting difference Roles of the Board, Senior management, Internal Audit, External Audit pertains internal control The responsibilities of CAE The component of ERM, Role of IA in ERM(Inferent Risk, Controllable Risk and Residual Risk) What are segment of duties Difference between Risk appetite, Risk response and Risk assessment What are the different types of controls Solution Answer:The Importance of IA function are Key concepts of independent and objectivity:Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another\'s independence and objectivity. The difference between Risk appetite, Risk response and Risk assessment: Both risk appetite and risk tolerance set boundaries of how much risk an entity is prepared to accept. Risk appetite is a higher level statement that considers broadly the levels of risks that management deems acceptable while risk tolerances are more narrow and set the acceptable level of variation around objectives. For instance, a company that says that it is does not accept risks that could result in a significant loss of its revenue base is expressing appetite. When the same company says that it does not wish to accept risks that would cause revenue from its top-10 customers to decline by more than 10% it is expressing tolerance. Operating within risk tolerances provides management greater assurance that the company remains within its risk appetite, which, in turn, provides a higher degree of comfort that the company will achieve its objectives. A risk assessment is a systematic examination of a task, job or process that you carry out at work for the purpose of; Identifying the significant hazards that are present (a hazard is something that has the potential to cause someone harm or ill health). The different types of controls are:.

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With n = 11 and p = 0.3, find the binomial probability P(5) by using a binomial probability table. (b) if np ? 5 and nq ?5, also estimate the indicated probability by using the normal distribution as an approproximation to the binomial; if np < 5 or nq < 5, then state that the normal approximation cannot be used. (a) Find the probability by using a binomial probability table. P (5) = (round to three decimal places as needed.) (b) Select the correct choice below and if neccessary, fill in the answer box to complete your choice. A. P(5) = (Round to four decimal places as needed) B. The normal distribution cannot be used. Answer Letter \"B\" only and show work,please. Solution Answer B) Since np= 11*0.3= 3.3 which is less than 5 normal approximation cannot be used.

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With n=14 and p=0.3, find the binomial probability P(6) by using a binomial probability table. P(6)= (Round to the three decimal) Also, If np is greater than or equal to 5 and nq is greater than or equal to 5, estimate the indicated probability by using the normal distribution as an approximation to the binomial. Solution for n=14 ,p=0.3,r=6 here r is the success here we want to calculate probability of getting 6 success out of 14 trial having chance of success is 30 % in each trial so using binomial distribution p(6)= 14C6 *p^6*(1-p)^(14-6)= 14C6*p^6*(1-p)^8 = 14C6*(0.3)^6*(0.70)^8 P(6)=0.126202 ( using table) np=14*0.3=4.2<5 nq=14*0.7=9.8>5.

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