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Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?A . Analytical review.B . Inquiry.C . Document verification.D . Observation.View AnswerAnswer: A
End user security is inadvertently granted to an unauthorized individual by management.
End user security is inadvertently granted to an unauthorized individual by management.A . 1 and 3.B . 1 and 4.C . 2 and 3.D . 2 and 4.View AnswerAnswer: D
Which of the following would be the best course of action for the CAE to take?
This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar...
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?A . Analytical review.B . Inquiry.C . Document verification.D . Observation.View AnswerAnswer: A
Which of the following actions are most appropriate for the auditor to take?
While attending a conference, an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization. Which of the following actions are most appropriate for the auditor to take?A . Consult with an immediate supervisor and notify the organization's audit committee.B . Consult with an...
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?A . A risk and control matrix.B . A flowchart.C . A walk-through.D . A process narrative.View AnswerAnswer: A
Maintain open and effective communications with the audit committee.
Maintain open and effective communications with the audit committee.A . 1 and 2 onlyB . 3 and 4 onlyC . 1, 3, and 4 onlyD . 2, 3, and 4 onlyView AnswerAnswer: D
To address this concern, which of the following actions is most appropriate for the CAE to take?
The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take? A. The CAE should agree with the audit...
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?A . Evaluating risk management processes.B . Recommending accountability for risk management.C . Providing assurance that risks are evaluated correctly.D . Supporting managers to identify ways to mitigate risks.View AnswerAnswer: B
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?A . Because management requires the review to measure effectiveness of the internal audit activity.B . So that the individual objectivity of the internal audit staff...
