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Download Practice of Internal Auditing Exam Dumps

NEW QUESTION 39
A chief audit executive has noticed that staff auditors are presenting more oral reports to supplement written reports. The best reason for the increased use of oral reports is that they:

A. Can be delivered in an informal manner without preparation.B. Can be prepared using a flexible format and reduce the information included in the written report.C. Reduce the amount of testing required to support audit findings.D. Permit auditors to counter arguments and provide additional information that the audience may require.

Answer: D

 

NEW QUESTION 40
Which of the following statements is true regarding the chief audit executive's (CAT$) responsibilities after completing an assurance or consulting engagement?

A. The CAE must acknowledge satisfactory performance when communicating the results of assurance and consulting engagementsB. The CAE must communicate the results of assurance and consulting engagements lo whoever can ensure that the results are given due consideration.C. The CAE may delegate the responsibility for communicating the results of consulting engagements although this responsibility cannot be delegated for assurance engagementsD. The CAE must establish a follow-up process tor both assurance and consulting engagements to monitor that management actions have been effectively implemented to address observations

Answer: B

 

NEW QUESTION 41
Persuasive evidence indicates that a member of senior management has been involved in insider trading that would be considered fraudulent. However, the evidence was encountered during an operational audit and is not considered relevant to the audit. Which of the following is the most appropriate action for the chief audit executive to take?

A. Discontinue audit work associated with the insider trading since it is not relevant to the existing audit.B. Conduct sufficient audit work to conclude whether fraudulent activity has taken place, then report the findings to the chairperson of the audit committee and to government officials if appropriate action is not taken.C. Report the evidence to external legal counsel for investigation. Report the legal counsel findings to management.D. Report the evidence to the chairperson of the audit committee and recommend an investigation.

Answer: D

Explanation:
Section: Volume C

 

NEW QUESTION 42
According to the Standards, which of the following is least important in determining the adequacy of an annual audit plan?

A. Appropriateness.B. Cost effectiveness.C. Effective deployment.D. Sufficiency.

Answer: B

 

NEW QUESTION 43
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