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Which of the following key controls should the auditor test to ensure that the company is not taking any unwanted credit risks?
At a construction company, an internal auditor is planning an audit of the company's process for designing and building grid connections. The process involves customers making payments m three parts • The first payment of 10% after approval of the customer s application • The second payment of 70% prior...
Which of the following courses of action would have prevented this situation?
An internal auditor was reviewing the procurement department's tender documentation for completeness He documented all discrepancies but the procurement manager disagreed with his findings Upon further review, the internal auditor noted that all discrepancies had been corrected in the tender database. Which of the following courses of action would have...
What sort of audit evidence has the internal auditor primarily obtained?
An internal auditor conducted interviews with several employees, documented the interviews analyzed the summaries, and drew a number of conclusions. What sort of audit evidence has the internal auditor primarily obtained?A . Documentary evidenceB . Testimonial evidenceC . Analytical evidenceD . Physical evidenceView AnswerAnswer: A
Which of the following information is most appropriate for the chief audit executive to share when coordinating audit plans with other internal and external assurance providers?
Which of the following information is most appropriate for the chief audit executive to share when coordinating audit plans with other internal and external assurance providers?A . Objectives scope and timing at a high level to support coordination while adhering to confidentiality requirementsB . The area and timing of the...
Acceding to IIA guidance, when of the Mowing is an assurance service commonly performed by the internal audit activity?
Acceding to IIA guidance, when of the Mowing is an assurance service commonly performed by the internal audit activity?A . Proposing fine item recommendation lot the annual financial budget of the accounting departmentB . Making recommendations regarding financial approval authority limits for the operations departmentC . Validating whether employees are...
The final internal audit report should be distributed to which of the following individuals?
The final internal audit report should be distributed to which of the following individuals?A . Audit client management onlyB . Executive management onlyC . Audit client management, executive management, and others approved by the chief audit executive.D . Audit client management, executive management, and any those who request a copy.View...
Which of the following is most likely to be a disadvantage of this outsourcing decision?
After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?A ....
Which of the following component should be added to this observation?
According to an internal audit observation, the organization’s rules of record management require all contracts to be registered and stored in a specific electronic system. One subsidiary has thousands of client contracts on paper, which are kept in the office because there are not enough assistants to scan the contracts...
Which of the following should management action plans include at a minimum?
Which of the following should management action plans include at a minimum?A . An implementer for the action planB . An owner of the action planC . The internal auditor's next review date of the action planD . Detailed procedures for the action planView AnswerAnswer: B
According to IIA guidance, which of the following roles should the CAE not undertake?
An organization's board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?A . Manage and coordinate risk management processes.B . Audit risk...
