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Which of the following justifies inclusion of this clause in the reports?
An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies...
Which of the following is the most important determinant of the objectives and scope of assurance engagements?
Which of the following is the most important determinant of the objectives and scope of assurance engagements? The organizational chart, business objectives, and policies and procedures of the area to be reviewedA . The most recent risk assessment conducted by management of the area to be reviewed.B . The requests...
For a new board chair who has not previously served on the organization’s board, which of the following steps should first be undertaken to ensure effective leadership to the board*?
For a new board chair who has not previously served on the organization’s board, which of the following steps should first be undertaken to ensure effective leadership to the board*?A . Chair should learn the current organizational culture of the company.B . Chair should learn the current risk management system...
Which of the following statements is true regarding partnership liquidation?
Which of the following statements is true regarding partnership liquidation?A . Operations can continue after the liquidation, if all partners agree.B . Partnership liquidation ends both the legal and economic life of an entityC . Partnership liquidation occurs when there is capital deficiency.D . When a partnership Is liquidated, each...
According to IIA guidance, which of the following statements is true regarding engagement planning?
According to IIA guidance, which of the following statements is true regarding engagement planning?A . For both assurance and consulting engagements, planning typically occurs after the engagement objectives and scope have already been determined.B . The expectations and objectives of an assurance engagement are usually determined by. or in conjunction...
Which of the following could increase risks to the organization’s control environment?
Which of the following could increase risks to the organization’s control environment?A . Strong board of directors oversight.B . Incentive-based compensation structuresC . Lower than average employee turnover.D . Implementation of a fraud hotlineView AnswerAnswer: B Explanation: Incentive-based compensation can increase the risk of unethical behavior or fraudulent activities as...
Which of the following procedures would be most appropriate to accomplish this objective?
The internal audit activity plans to assess the effectiveness of management’s self-assessment activities regarding the risk management process. Which of the following procedures would be most appropriate to accomplish this objective?A . Review corporate policies and board minutes for examples of risk discussions.B . Conduct interviews with line and senior...
According to the IIA Code of Ethics, which of the following is required with regard to communicating results?
According to the IIA Code of Ethics, which of the following is required with regard to communicating results?A . The internal auditor should present material information to appropriate personnel within the organization without revealing confidential matters that could be detrimental to the organizationB . The internal auditor should disclose all...
The internal audit activity is responsible for which of the following actions related to an organization’s internal controls?
The internal audit activity is responsible for which of the following actions related to an organization’s internal controls?A . Mitigating risks affecting achievement of organizational objectives.B . Enabling opportunities affecting achievement of organizational objectives.C . Analyzing and advising regarding costs versus benefits of control activities.D . Attesting to fairness of...
Which of the following justifies inclusion of this clause in the reports?
An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies...
