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In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?
In which scenario might it be considered problematic for the chief audit executive (CAE) to provide assurance services over the payroll function?A . The CAE previously undertook a consulting assignment in that area to improve processes, B. A couple of years ago, the CAE performed accounting functions for the payroll...
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?A . Planning an engagement of the area in which fraud is suspected. B. Employing audit tests to detect fraud. C. Interrogating a suspected fraudster D. Completing...
Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?
Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?A . Appoint the chief audit executive as a member of the board. B. Adopt written policies and procedures for the internal audit activity, approved by...
In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?
In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?A . Involve board members in hiring activities and request advice. B. Require all internal audit staff to complete...
Which of the following best describes the risk contained in an initial public offering for a new stock?
Which of the following best describes the risk contained in an initial public offering for a new stock?A . Residual risk. B. Net risk. C. Inherent risk. D. Underlying risk.View AnswerAnswer: C
Which of the following scenarios would most significantly restrict the areas where interna! audit could perform assurance services?
Which of the following scenarios would most significantly restrict the areas where interna! audit could perform assurance services?A . Regulators mandate specific audit engagements to be included in the audit plan. B. The internal audit activity reports functionally to the chief financial officer C. The internal audit activity reports administratively...
Which of the following is a true statement regarding whistleblowing?
Which of the following is a true statement regarding whistleblowing?A . Whistleblowing is one of several possible ethical structures an organization can undertake to encourage ethical behavior. B. Whistleblowing programs help employees deal with ethical questions and instill ethical values into everyday behavior C. Whistleblowers are current or former employees...
In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?
In which of the following ways can a chief audit executive demonstrate to the board that the internal audit activity collectively possesses all of the skills needed to complete its annual goals?A . Involve board members in hiring activities and request advice. B. Require all internal audit staff to complete...
Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?
Which of the following situations best describes an internal auditor who may have violated the IIA Code of Ethics principle of confidentiality?A . The auditor intentionally omitted from his resume that he was fired from his previous job for fraud allegations, B. The auditor decided not to notify her supervisor...
Which of the following actions should the internal auditor take first?
An internal auditor believes that the internal audit activity's independence is impaired. Which of the following actions should the internal auditor take first?A . Report the impairment to senior management B. Discuss the impairment with the audit manager C. Ascertain the best approach to disclose the impairment. D. Decide on...
