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The cost of modifying the sales system to include a preventive control is less than
The cost of modifying the sales system to include a preventive control is less than S100.000A . 1 only B. 3 only C. 1 and 3 only D. 1, 2, and3View AnswerAnswer: A
Which of the following statements describes an engagement planning best practice?
Which of the following statements describes an engagement planning best practice?A . It is best to determine planning activities on a case-by-case basis because they can vary widely from engagement to engagement. B. If the engagement subject matter is not unique, it is not necessary to outline specific testing procedures...
Which of the following engagement objectives would be appropriate to fulfill this request?
The board of directors expressed concerns about potential external risks that could impact the organization s ability to meet its annual objectives and goals The board requested consulting services from the internal audit activity to gain insight regarding the external risks. Which of the following engagement objectives would be appropriate...
To follow up, which of the following is the most appropriate action for the internal auditor to take?
An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?A . Observe corrective measures. B. Seek a management assurance declaration. C. Follow up during the...
Which of the following statements is false regarding audit criteria?
Which of the following statements is false regarding audit criteria?A . Audit criteria should be consistent across audit assignments. B. Audit criteria should represent reasonable standards against which to assess existing conditions. C. Audit criteria should provide flexibility but allow identification of nonadherence. D. Audit criteria should equate to good...
The audit plan is aligned with the organization's goals.
The audit plan is aligned with the organization's goals.A . 1 and 2 only B. 3 and 4 only C. 1, 2, and 4 D. 1, 3, and 4View AnswerAnswer: C
In which of the following populations would the internal auditor most likely choose to use a stratified sampling approach?
In which of the following populations would the internal auditor most likely choose to use a stratified sampling approach?A . Inventory comprised of the same items stored in different warehouses B. Batches of materials that must be confirmed as meeting quality standards C. Revenue that is earned by an organization...
During the filework phase of an assurance engagement the internal auditor decides that she wants to adjust the audit work program.
During the filework phase of an assurance engagement the internal auditor decides that she wants to adjust the audit work program. Which of the following is the most appropriate next step for the auditor to take9A . Request additional information needed from management of the area under review. B. Obtain...
Acceding to IIA guidance, when of the Mowing is an assurance service commonly performed by the internal audit activity?
Acceding to IIA guidance, when of the Mowing is an assurance service commonly performed by the internal audit activity?A . Proposing fine item recommendation lot the annual financial budget of the accounting department B. Making recommendations regarding financial approval authority limits for the operations department C. Validating whether employees are...
Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?
An organization buys crude oil on the open market and refines it into a high-quality gasoline. The price of crude oil is extremely volatile. Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?A . Enter into long-term gasoline purchase agreements...
