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Which of the following would best help the organization manage the risk of fraud?
An organization allows the same individuals to physical access inventory and purchase new assets when supplies are depleted. Which of the following would best help the organization manage the risk of fraud?A . Accounting personnel should regularly perform reconciliation between invoices and purchase orders B. Accounting personnel should conduct a...
With regard to the internal audit activity's quality assurance and improvement program, which of the following must be reported to the board?
With regard to the internal audit activity's quality assurance and improvement program, which of the following must be reported to the board?A . A statement of independence of the organization's internal auditors. B. Meeting minutes with the assessment team, if key risks were identified and discussed. C. Frequency of the...
Which of the following is the most appropriate consideration during this process?
A new internal audit activity is considering the adoption of a risk and control framework. Which of the following is the most appropriate consideration during this process?A . The framework should not be developed by the internal audit activity B. The framework should apply to individual projects rather than the...
Which of the following organizational practices is likely to be a part of a corporate social responsibility program?
Which of the following organizational practices is likely to be a part of a corporate social responsibility program?A . A mining company practices backfilling and planting trees after mining within an area. B. A construction company ensures that its workers are paid at the regulated minimum wage. C. A foods...
Which of the following would best describe a control implemented to detect cash register disbursement fraud in a large retail store?
Which of the following would best describe a control implemented to detect cash register disbursement fraud in a large retail store?A . Separate the duties of processing and authorizing refunds on merchandise B. Post signs in the register area prompting customers to ask for and examine their sales receipts C....
Given management's discovery, which of the following statements is valid?
An internal audit of warehouse inventory revealed no material deficiencies. However, management later discovered fraud, which occurred during the period that was audited, and determined that a major control deficiency allowed the fraud to occur. Given management's discovery, which of the following statements is valid?A . The internal auditors violated...
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?A . The scope and frequency of both internal and external quality assessments. B. The list of audit engagements that will be...
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?A . Obtaining assurance on external financial, regulatory, and internal audits. B. Complying with laws, regulations, and codes. C. Assigning authority and responsibilities organization wide. D. Monitoring and measuring performance.View AnswerAnswer: A
What is the most appropriate course of action for the CAE to take?
While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering...
Which of the following would be the best course of action for the chief audit executive (CAE) to take?
A subsidiary of the organization was preparing for an initial public offering (IPO). Af the request of the audit committee, the chief audit executive (CAE) and all senior audit staff were actively involved in the process by helping collect and validate financial data, conducting assessments, and participating in meetings with...
