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Which analytics procedure would the auditor use?
An internal auditor wants to compare performance information from one quarter to another. Which analytics procedure would the auditor use?A . Ratio analysisB . Trend analysisC . Vertical analysisD . Benchmarking analysisView AnswerAnswer: A
Which of The following best describes a risk that is deemed "unacceptable" to the organization?
Which of The following best describes a risk that is deemed "unacceptable" to the organization?A . A risk where likelihood and impact are highB . A risk where inherent risk exceeds its residual riskC . A risk where inherent risk exceeds the tolerance levelD . A risk where residual risk...
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?A . Report follow-up activities to senior management.B . Implement follow-up procedures to evaluate residual risk.C . Determine the costs of implementing the recommendations.D . Evaluate the extent of improvements.View...
Which of the following components are missing in the observation?
An audit observation states the following: "Despite the rules of the organization there is no approved credit risk management policy in the subsidiary. The subsidiary is concluding contacts with clients who have very high credit ratings. The internal audit team tested 50 contacts and 17 showed clients with a poor...
Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?
An organization buys crude oil on the open market and refines it into a high-quality gasoline. The price of crude oil is extremely volatile. Which of the following is the most appropriate risk management technique to protect the organization against these price fluctuations?A . Enter into long-term gasoline purchase agreements...
Which of the following is the most appropriate conclusion for the auditor to include in the audit report?
An internal auditor completed a review of expenses related to the launch of a new project. The auditor sampled 45 transactions approved by a senior project manager and identified 30 with questionable vendor documentation. Which of the following is the most appropriate conclusion for the auditor to include in the...
According to IIA guidance, which of the following reflects a characteristic of sufficient and reliable information?
According to IIA guidance, which of the following reflects a characteristic of sufficient and reliable information?A . The establishment of an audit approach and documentation systemB . The standardization of workpaper terminology and notationsC . The ability to reach consistent audit conclusions regardless of who performs the auditD . The...
With this data, which of the following types of ghost employees will the auditor be able to identify?
An internal auditor wants to identity potential ghost employees in the organization's payroll system. The auditor extracts the following data - Human resources data with employees' names addresses employment conditions and identification codes - Payroll data - Logs from entrance systems With this data, which of the following types of...
Which of the following should be described in the recognition element of a typical internal audit repot?
Which of the following should be described in the recognition element of a typical internal audit repot?A . Positive aspects of the process or area under reviewB . A brief synopsis of the process of area under reviewC . Outcomes and ratings of the process or area under reviewD ....
Which of the following engagement objectives would be appropriate to fulfill this request?
The board of directors expressed concerns about potential external risks that could impact the organization s ability to meet its annual objectives and goals The board requested consulting services from the internal audit activity to gain insight regarding the external risks. Which of the following engagement objectives would be appropriate...
