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Which of the following would be the best response by the CAE?
Management has asked the chief audit executive (CAE) to provide assurance on the organization's automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?A ....
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
Which of the following tests would best help the internal auditor detect fraudulent activity?
During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing. Which of...
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks...
Why is a code of ethics for the internal audit profession necessary?
Why is a code of ethics for the internal audit profession necessary?A . It ensures that all members of the profession possess the same level of competence.B . It provides auditors with protection from lawsuits.C . It guides internal auditors in their service to others.D . It requires auditors to...
As a result, which IIA Code of Ethics principle is presumed to be impaired?
An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year. As a result, which IIA Code of Ethics principle is presumed to be impaired?A . Competence.B . Flexibility.C . Objectivity.D . Independence.View AnswerAnswer: C
Which of the following is the most appropriate action for the CAE to take?
A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?A . The CAE should not interfere...
Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?
Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?A . It considers tolerable deviation rate more effectively than does statistical sampling.B . Sampling risk will be accurately quantified through non-statistical sampling.C . Non-statistical sample results must be projected to the population.D ....
Which of the following is a second line of defense in effective risk management and control?
Which of the following is a second line of defense in effective risk management and control?A . Purchasing department.B . Compliance department.C . Credit department.D . Internal audit department.View AnswerAnswer: B
Which of the following strategies best fulfills the requirements of the Standards regarding these audits?
The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan. Which of the following strategies best fulfills the requirements of the Standards regarding these audits?A . The scope of store operations...
