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NEW QUESTION 39
Management requested the chief audit executive (CAE) to include an audit of the organization's health and safety program in next year's annual audit plan. However, the internal audit department has no expertise in this area. Which of the following would be the most appropriate action by the CAE?

A. Meet with management to explain that the audit cannot be undertaken and discuss alternative strategies that can be implemented until internal audit can develop its capability in the area.B. Accept the request provided management has conducted a thorough risk assessment prior to the engagement to help guide the audit.C. With management's agreement, amend the scope of the audit to ensure that areas examined do not require specialized knowledge and expertise.D. Advise management that compliance audits of this type should only be conducted by the corresponding regulatory agency to ensure independence.

Answer: A

Explanation:
Section: Volume D
Explanation/Reference:

 

NEW QUESTION 40
If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

A. Targeted sampling.B. Attributes sampling.C. Variables sampling.D. Discovery sampling.

Answer: D

 

NEW QUESTION 41
Which of the following is a detective control for managing the risk of fraud?

A. Receipts for employee expenses.B. Contractor non-disclosure agreements.C. Verification of currency exchange rates.D. Awareness of prior incidents of fraud.

Answer: C

Explanation:
Section: Volume E

 

NEW QUESTION 42
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