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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 analysis B. Trend analysis C. Vertical analysis D. Benchmarking analysisView AnswerAnswer: A
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 would most likely cause an internal auditor to consider adding fraud work steps to the audit program?
Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?A . Improper segregation of duties. B. Incentives and bonus programs. C. An employee's reported concerns. D. Lack of an ethics policy.View AnswerAnswer: C
Which of the following is an appropriate documentation of proper engagement supervision?
Which of the following is an appropriate documentation of proper engagement supervision?A . A completed engagement workpaper review checklist. B. The supervisor's review notes on engagement workpapers. C. The email exchanges between the audit team and the supervisor. D. A supervisor's approval of resources allocated to the engagementView AnswerAnswer: B
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...
Which of the following should be added to the observation?
'Internal policy prohibits employees from entering into contacts with financial obligations without proper approval. A project manager signed a change to an important service agreement without obtaining the proper approval As a result the organization is receiving $5,000 per month less for its services.’’ Which of the following should be...
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...
Which of the following has the greatest effect on the efficiency of an audit?
Which of the following has the greatest effect on the efficiency of an audit?A . The complexity of deficiency findings. B. The adequacy of preliminary survey information. C. The organization and content of workpapers. D. The method and amount of supporting detail used for the audit report.View AnswerAnswer: B
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 requirements B. The area and timing of the...
Which of the following would best assist the CAE in achieving this balance1?
A chief audit executive (CAE) is trying to balance the internal audit activity's needs for technical audit skills budget efficiency and staff development opportunities. Which of the following would best assist the CAE in achieving this balance1?A . Strategic sourcing B. Loan staff arrangement C. Flat organizational structure D. Hierarchical...
