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NEW QUESTION 41
When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?
Findings of the last audit engagement performed.
Probability of significant errors, irregularities, or noncompliance.
Extent of work needed to achieve engagement objectives.
Cost of the engagement versus the potential benefits.

A. 1 and 4 onlyB. 2 and 3 onlyC. 1,2,3,and 4D. 2,3,and 4 only

Answer: D

 

NEW QUESTION 42
An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

A. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.B. Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.C. Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.D. Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

Answer: A

 

NEW QUESTION 43
An audit of the quality control department is being planned. Which of the following would least likely be used in the preparation of a preliminary survey questionnaire?

A. An analysis of quality control documents.B. The permanent audit file.C. The prior audit report.D. Management's charter for the quality control department.

Answer: A

Explanation:
Section: Volume A

 

NEW QUESTION 44
Which of the following scenarios depicts an appropriate role for the internal audit activity to take regarding an organization's risk management process?

A. Internal audit designs and implements the organization's controls to help manage risk.B. Internal audit sets the organization's risk tolerance and promotes awareness throughout the organization.C. Internal audit is responsible for safeguarding the organization's assets and preventing loss from occurring.D. Internal audit assesses whether the organization's risk management processes are effective.

Answer: D

 

NEW QUESTION 45
An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time,and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?

A. Continue with the present auditor,as more than one year has passed.B. Withdraw the audit team and outsource the financial audit of the division.C. Work with the division's management to resolve the situation.D. Replace the auditor with another audit staff member.

Answer: D

 

NEW QUESTION 46
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