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When forming an opinion on the adequacy of management's systems of internal control, which of the following findings would provide the most reliable assurance to the chief audit executive?
When forming an opinion on the adequacy of management's systems of internal control, which of the following findings would provide the most reliable assurance to the chief audit executive? • During an audit of the hiring process in a law firm, it was discovered that potential employees' credentials were not...
Which of the following responses would be most effective to mitigate this risk?
During a review of the treasury function an internal auditor identified a risk that all bank accounts may net to include in the daily reconciliation process. Which of the following responses would be most effective to mitigate this risk?A . The treasury supervisor establishes a threshold for amounts on bank...
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...
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 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...
Third-party opinion.
Third-party opinion.A . 1 and 3 B. 1 and 4 C. 2 and 3 D. 2 and 4View AnswerAnswer: C
When me internal audit activity does not have sufficient time to complete its usual root cause analysis which c4 the following is most appropriate?
When me internal audit activity does not have sufficient time to complete its usual root cause analysis which c4 the following is most appropriate?A . The chief audit executive may recommend that management conduct further work to identify the root cause and address the issue B. Internal auditors should finish...
According to the IIA guidance, which of the following foes the engagement work test in a review in a review of an organization al process?
According to the IIA guidance, which of the following foes the engagement work test in a review in a review of an organization al process?A . Process objectives B. Process risks C. Process controls D. Process scopeView AnswerAnswer: C
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...
How would the CAE proceed to determine the objectives of this engagement?
An organization's finance manager plans to implement a state-of-the-art management system to better manage the organization's receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system. How would the CAE proceed to determine the...
