30 Questions
What type of documents are included in the Enterprise Risk Management Report?
Enterprise Risk Rating Criteria
How often is the Enterprise Risk Register output provided?
At least annually
Who is responsible for providing the Enterprise Risk Management Report?
GRC/A F/Process Owners
What is the purpose of the Enterprise Risk Matrix in the Enterprise Risk Management Report?
To visually represent the relationship between risks and their impacts
Who utilizes the outputs provided by GRC for the development of the internal audit plan?
AF
What is the frequency of providing the Enterprise Risk Management Report?
At least annually
What is the primary role of the Audit Function (AF) in the Nigerian National Petroleum Company Limited and its subsidiaries?
To carry out independent, objective, assurance and consulting activities
What does the AF support the Board of Directors in doing?
Discharging governance responsibilities
What is one of the specific assessments that the Audit Function shall conduct?
Integrity of processes and systems to prevent fraud or loss
What does the Internal Audit Policies and Procedures Manual ('the Manual') aim to guide?
NNPC Limited's internal audit operating model and processes
What is a key focus area for the AF when conducting assessments?
Compliance with NNPC Limited's policies and procedures
What is the purpose of follow-up action taken by the AF?
To remedy weaknesses identified during reviews
What is the primary objective of NNPC Limited's Enterprise Risk Assessment process?
To gain understanding of risks to strategic objectives and develop internal audit plan
What activities are involved in the risk identification process of NNPC Limited's Enterprise Risk Assessment?
Assessing industry trends and feasibility studies
Who determines the risk assessment criteria and approach for NNPC Limited's Enterprise Risk Assessment?
Chief Audit Officer with management buy-in
How are risks assessed in NNPC Limited's Enterprise Risk Assessment?
Using selected criteria and methods such as workshop or questionnaire
What are the outputs of NNPC Limited's Enterprise Risk Assessment?
Business understanding document and enterprise risk matrix
Who uses the results of NNPC Limited's Enterprise Risk Assessment for developing the risk-based audit plan?
Audit Function
What is the main focus of the RBIA Methodology in NNPC Limited's internal audit?
Identifying and analyzing risks preventing the corporation from achieving strategic goals
Which of the following is NOT mentioned as a method for conducting risk assessment in the RBIA Methodology?
Budget allocation analysis
What is the purpose of the Business Understanding Document (BUD) in the risk assessment process?
To include details of the auditable entity and management team
Who conducts the annual strategic analysis to understand NNPC's organizational imperatives?
Chief Audit Officer and Managers
What is the aim of the risk assessment process within the RBIA Methodology?
To remain adaptable to changing business environments
What is the primary outcome of the risk assessment phase in the RBIA Methodology?
Consistent and repeatable measurement of risks
According to the NNPC Limited Internal Audit Processes and Procedures manual, who is required to comply with the guidelines and minimum standards outlined?
All users, with no exceptions
What is the frequency of updating the NNPC Limited Internal Audit Processes and Procedures manual?
Every two years
In which phase of the Risk-Based Internal Audit Methodology (RBIA Methodology) is the identification of risks conducted?
Identification
What does the NNPC Limited Internal Audit Processes and Procedures manual focus on when employing the Risk-Based Internal Audit Methodology (RBIA Methodology)?
Objectives and hindrances to their achievement
Who is involved in the risk assessment process under the scalable top-down risk-based approach employed by NNPC Limited Internal Audit Processes and Procedures manual?
Business process owners and Senior Management
What is the purpose of the NNPC Limited Internal Audit Processes and Procedures manual's shift from a traditional approach to a more value-added approach?
To add value to internal audit activities
Study Notes
- The text is about the NNPC Limited Internal Audit Processes and Procedures manual.
- The manual provides guidelines and minimum standards for the execution of the Audit Function's (AF) responsibilities.
- Contains a high-level Mandate, SIPOC Model, and Relationship Map for the IA Function.
- Consists of four core chapters, each with an Introduction, Objectives, Policies, Procedures, Input and Output Documents, and Key Performance Indicators.
- Compliance with the manual is mandatory for all users, with exceptions requiring prior written waiver from the Chief Audit Officer.
- Applies to all sub-functional areas in the Audit Function and all auditable business functions within NNPC Limited.
- Intended to be updated every two years, with communication to all relevant departments and units.
- Adopted a Risk-Based Internal Audit Methodology (RBIA Methodology) focusing on objectives and hindrances to their achievement, employing a top-down approach to delivering efficient and effective audits.
- RBIA Methodology comprises of five major phases: Identification, Risk Assessment, Planning, Execution, and Reporting.
- Employs a scalable top-down risk-based approach, involving business process owners and Senior Management in the risk assessment process, and focusing on the review of the adequacy and effectiveness of the system of internal controls within NNPC Limited and its subsidiaries.
- Incorporates the Nigerian code of corporate governance and other leading governance codes on internal audit.
- Shifts internal auditing from a traditional approach to a more value-added approach.
Test your knowledge on audit accounting issues, risk management, and existing policies and procedures with this quiz. Explore the importance of proactive risk anticipation and the role of the 'Third Line' in empowering risk management.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
