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What is the best course of action for a chief audit executive if an internal auditor identifies in the early stage of an audit that some employees have inappropriate access to a key system?
What is the best course of action for a chief audit executive if an internal auditor identifies in the early stage of an audit that some employees have inappropriate access to a key system?A . Contact the audit committee chair to discuss the finding B. Obtain verbal assurance from management...
Which of the following would most likely assure the CAE that the engagement had adequate supervision?
A chief audit executive (CAE) reviews the supervision of an internal audit engagement. Which of the following would most likely assure the CAE that the engagement had adequate supervision?A . The engagement supervisor has an open door pokey for audit team members to discuss concerns B. The supervisor reviews weekly...
Which of the following audit procedures is most appropriate when existing internal controls are weak?
An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?A . Analytical procedures. B. Detail testing. C. Test of design. D. Test of control.View AnswerAnswer: B
Which of the following components are missing in the observation?
An audit observation states the following: "Despite the rules of the organization there is no approved credit risk management policy in the subsidiary. The subsidiary is concluding contacts with clients who have very high credit ratings. The internal audit team tested 50 contacts and 17 showed clients with a poor...
Which of the following is most likely to be a disadvantage of this outsourcing decision?
After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?A ....
Internal control questionnaires are used to achieve which of the following objectives?
Internal control questionnaires are used to achieve which of the following objectives?A . To ascertain the operating effectiveness of a procedure B. To verify the accuracy of Information in a report C. To assess the controls mitigating major risks D. To determine whether specified contra procedures are in placeView AnswerAnswer:...
Which of the following items, included in the preliminary audit communication would be most useful for management to formulate action plans in response to audit recommendations?
Which of the following items, included in the preliminary audit communication would be most useful for management to formulate action plans in response to audit recommendations?A . A condition B. An audit objectives C. An audit scope D. An observation ratingView AnswerAnswer: D
Which of the following is true regarding the validity of the observation closure?
Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process. Which of the following is true regarding the validity of the observation closure?A . Valid closure requires evidence that ensures the corrected process will function as expected in the future B. Valid...
Which of the following would most appropriately be used for this purpose?
An internal auditor is assigned to validate calculations on the organization's building application As pad of the test the internal auditor is required to use an automated audit tool to simulate transactions for testing. Which of the following would most appropriately be used for this purpose?A . Generalized audit software....
Which type of engagement would be most appropriate to assess the root causes of the quality issues?
A toy manufacturer receives certain components from an overseas supplier and uses them to assemble final products Recently quality reviews have identified numerous issues regarding the components' compliance with mandatory quality standards. Which type of engagement would be most appropriate to assess the root causes of the quality issues?A ....
