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Which of the following would be the most effective preventative control to reduce these losses?
During an audit engagement of a large retail store, internal auditors noted significant discrepancies between available inventory and sales and suspect an abuse of cash register refunds and voids. Which of the following would be the most effective preventative control to reduce these losses?A . Ensure that returned merchandise is...
Which of the following actions is most appropriate for the CAE to take?
The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions...
Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.
Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.A . 1 and 2 only. B. 1.2, and 3 only. C. 1.3. and 4 only. D. 3 and 4 only.View AnswerAnswer: C
Which of the following concepts is emphasized in the Mission of Internal Audit?
Which of the following concepts is emphasized in the Mission of Internal Audit?A . Support of good governance and controls. B. Enhancement of organizational value. C. Protection of tangible and intangible assets. D. Provision of professional advisory and assurance services.View AnswerAnswer: B
Which of the following would be the most suitable internal control framework for an organization to adopt?
Which of the following would be the most suitable internal control framework for an organization to adopt?A . A framework that specifies common best practices for an organization to evaluate and benchmark. B. A framework that specifies correct and incorrect business methodologies. C. A framework with precise specifications for how...
Which of the following would be a preventive control for helping to manage fraud in an organization?
Which of the following would be a preventive control for helping to manage fraud in an organization?A . Reviews of reports to determine which issued payments lack evidence of supervisory review. B. A monthly review of new vendors performed by management for reasonableness. C. Bank reconciliations performed on a monthly...
What is the best course of action for the auditor to take?
An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?A . Speak to the payroll manager so he may investigate the auditor's observations....
What approach should the CAE take for the upcoming financial statement controls audit?
A chief audit executive (CAE) recruited a few new internal auditors to reduce the resource gaps identified in this year's internal audit plan. One of the new recruits has several years of experience with the organization. Ten months ago. she served as a senior supervisor in the finance department. However,...
This decision is primarily intended to mitigate which of the following risks?
Management decided to post the organization's newly established code of conduct on its website. This decision is primarily intended to mitigate which of the following risks?A . Accountability risk. B. Communication risk. C. Knowledge risk. D. Cultural risk.View AnswerAnswer: D
Which of the following would be the most appropriate action for the CAE to take?
A chief audit executive (CAE) has been asked by the board to evaluate the effectiveness of ethical programs created by management. Which of the following would be the most appropriate action for the CAE to take?A . Compare the design of the organization's ethical programs with best practices. B. Verify...
