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With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?
With regard to governance, which of the following is a board-level responsibility rather than a management responsibility?A . Obtaining assurance on external financial, regulatory, and internal audits. B. Complying with laws, regulations, and codes. C. Assigning authority and responsibilities organization wide. D. Monitoring and measuring performance.View AnswerAnswer: A
What is the most appropriate course of action for the CAE to take?
While preparing the audit plan for an automobile manufacturing company, the chief audit executive (CAE) noted that the company's engineering department received a high risk ranking. However, the internal audit activity is understaffed, and current staff do not possess the necessary skills to adequately assess the effectiveness of the engineering...
Which of the following would be the best course of action for the chief audit executive (CAE) to take?
A subsidiary of the organization was preparing for an initial public offering (IPO). Af the request of the audit committee, the chief audit executive (CAE) and all senior audit staff were actively involved in the process by helping collect and validate financial data, conducting assessments, and participating in meetings with...
Internal controls belong to which risk response category?
Internal controls belong to which risk response category?A . Reduction. B. Avoidance. C. Sharing. D. Acceptance.View AnswerAnswer: A
Which of the following tests would best detect instances where personal travel has been claimed?
An internal auditor is reviewing employee travel expenses from the previous six months for fraud. Which of the following tests would best detect instances where personal travel has been claimed?A . Verifying whether claims have been properly authorized for payment B. Verifying whether claims are properly supported by invoices or...
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?A . Segregating duties in the payroll processes. B. Confirming receipt of goods or services. C. Performing background checks on newly hired...
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?A . The scope and frequency of both internal and external quality assessments. B. The list of audit engagements that will be...
In which of the following ways can a whistleblower hotline serve as a prevent Aative control?
In which of the following ways can a whistleblower hotline serve as a prevent Aative control?A . Third parties who operate the hotline ensure anonymity for whistle blowers. B. Whistleblower tips help discover wrongdoings and violations of the code of conduct. Potential perpetrators of fraud know that their actions can...
Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?
Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?A . Internal auditors have shown they have the freedom to carry out their responsibilities. B. Internal auditors have demonstrated the skills needed to carry out the audit engagement. C. Internal auditors...
Which of the following actions would be most effective to help an internal auditor determine how successful the organization has been in communicating the existence of its ethics hotline?
Which of the following actions would be most effective to help an internal auditor determine how successful the organization has been in communicating the existence of its ethics hotline?A . Reviewing the number of anonymous hotline allegations against employee complaints. B. Surveying employees to determine whether they are aware of...
