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NEW QUESTION 31
A large retail organization, which sells most of its products online, experiences a computer hacking incident.
The chief IT officer immediately investigates the incident and concludes that the attempt was not successful.
The chief audit executive (CAE) learns of the attack in a casual conversation with an IT auditor. Which of the following actions should the CAE take?
1. Meet with the chief IT officer to discuss the report and control improvements that will be implemented as a result of the security breach, if any.
2. Immediately inform the chair of the audit committee of the security breach, because thus far only the chief IT officer is aware of the incident.
3. Meet with the IT auditor to develop an appropriate audit program to review the organization's Internet-based sales process and key controls.
4. Include the incident in the next quarterly report to the audit committee.

A. 1 and 3B. 3 and 4C. 1 and 2D. 2 and 4

Answer: C

Explanation:
Section: Volume E

 

NEW QUESTION 32
In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?

A. The validity of documentary evidence is independent of the effectiveness of the control system in which it was created.B. Recomputation, though highly valid, is limited in usefulness due to its limited scope.C. Internally created documentary evidence is considered less valid than externally created documentary evidence.D. The validity of confirmations varies directly with the independence of the party receiving the confirmation.

Answer: A

 

NEW QUESTION 33
The chief audit executive (CAE) of a small internal audit activity (IAA) plans to test conformance with the Standards through a quality assurance review. According to the Standards, which of the following are acceptable practice for this review?
1. Use an external service provider.
2. Conduct a self-assessment with independent validation.
3. Arrange for a review by qualified employees outside of the IAA.
4. Arrange for reciprocal peer review with another CAE.

A. 1, 2, and 3B. 1 and 2C. 2, 3, and 4D. 2 and 4

Answer: B

Explanation:
Section: Volume E

 

NEW QUESTION 34
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