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NEW QUESTION 45
Which of the following events would most likely cause the chief audit executive to consider changing the current year's audit plan?
1. The government announced that new regulatory requirements will be introduced in the coming years which may significantly impact the organization's primary product.
2. A major competitor unexpectedly introduced a new model at a lower price point to compete with the organization's market leading product.
3. The organization announced a new joint venture with a long time corporate partner to introduce a new product with development costs and sales beginning next fiscal year.
4. An equal joint venture partner filed a lawsuit against the organization and requested that the court issue an immediate suspension of future product shipments.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION 46
Which of the following situations justifies the release of an interim report to management and the board?
- The internal auditor is convinced that the audit observations require immediate attention. - The internal auditor would like to communicate a change in engagement scope for the activity under review. - The internal auditor notes that the engagement may extend over a longer time period. - The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.
Answer: B
NEW QUESTION 47
Which of the following items, included in the preliminary audit communication would be most useful for management to formulate action plans in response to audit recommendations?
Answer: C
NEW QUESTION 48
According to IIA guidance, which of re following actions should the internal auditor take immediately after having considered fraud scenarios and identified and prioritized fraud risks?
Answer: C
NEW QUESTION 49
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