- All Exams Instant Download
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 ....
Which of the following courses of action would have prevented this situation?
An internal auditor was reviewing the procurement department's tender documentation for completeness He documented all discrepancies but the procurement manager disagreed with his findings Upon further review, the internal auditor noted that all discrepancies had been corrected in the tender database. Which of the following courses of action would have...
Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?
Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?A . Strategic plans reflect the organization's business objectives and overall attitude toward risk.B . Strategic plans are helpful to identify major areas of activity, which may...
The amount of fuel purchased.
The amount of fuel purchased.A . 1 and 2B . 1 and 4C . 2 and 3D . 3 and 4View AnswerAnswer: C
Which analytics procedure would the auditor use?
An internal auditor wants to compare performance information from one quarter to another. Which analytics procedure would the auditor use?A . Ratio analysisB . Trend analysisC . Vertical analysisD . Benchmarking analysisView AnswerAnswer: A
Which of The following best describes a risk that is deemed "unacceptable" to the organization?
Which of The following best describes a risk that is deemed "unacceptable" to the organization?A . A risk where likelihood and impact are highB . A risk where inherent risk exceeds its residual riskC . A risk where inherent risk exceeds the tolerance levelD . A risk where residual risk...
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?A . Report follow-up activities to senior management.B . Implement follow-up procedures to evaluate residual risk.C . Determine the costs of implementing the recommendations.D . Evaluate the extent of improvements.View...
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 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...
Which of the following is the most appropriate conclusion for the auditor to include in the audit report?
An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with questionable vendor documentation. Which of the following is the most appropriate conclusion for the auditor to include in the...
