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Which of following people or groups is most appropriate to perform this audit?
A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?A . The government's independent auditor.B . The external auditors from an accounting firm.C . The internal audit activity.D . The agency's...
Which of the following would not be a red flag for fraud?
Which of the following would not be a red flag for fraud?A . Several recent, large expenditures to a new vendor have not been documented.B . A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager's salary.C . A weak...
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 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...
Which of the following would be considered a preventive control?
Which of the following would be considered a preventive control?A . A library control log.B . A review of exception reports.C . A password lock on a server.D . A software scan of financial records for irregularities.View AnswerAnswer: C
Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?
Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?A . Hire a risk consultant.B . Implement a hedging strategy.C . Maintain a large foreign currency balance.D . Insist that customers only pay in a stable currency.View...
Which of the following would impair the internal audit function's independence?
A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO). Which of the following would impair the internal audit function's independence?A . The CFO determines the scope of internal audit work...
Which of the following would impair the internal audit function's independence?
A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO). Which of the following would impair the internal audit function's independence?A . The CFO determines the scope of internal audit work...
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 activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?
Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?A . The internal auditor reviews the physical access to merchandise during an inventory count.B . The audit manager conducts an internal quality assessment of the internal...
