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NEW QUESTION 50
The internal audit activity of an organization obtained approval to add a senior auditor to its staff. The chief audit executive, audit manager, and audit supervisor each will interview the candidates. According to the Standards, which of the following best explains the involvement of management in the interview process?

A. Allows audit management to explain the criteria that will be used to evaluate the senior auditor's performance.B. Assists audit management in planning by more effectively allocating the senior auditor to appropriate audits.C. Provides audit management with the opportunity to communicate expectations regarding ethical behavior standards.D. Enables audit management to outline its quality assurance and improvement program with the senior auditor.

Answer: B

 

NEW QUESTION 51
While conducting an audit of a third party's Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the program and notify customers with multiple accounts that the accounts will be consolidated. Which of the following actions should the auditor take?
1.Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
2.Evaluate the adequacy and effectiveness of the corrective action proposed by management.
3.Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
4.Submit management's plan of action to the external auditors for additional review.

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

Answer: C

 

NEW QUESTION 52
An internal auditor is reviewing purchases made through the organization's corporate credit card program.
Which of the following statements best describes a root cause of a deficiency?

A. Sample testing found 10% non-compliance with the organization's business travel policy.B. A control to detect split purchases has not been activated in the credit card system.C. Company policy limits card use to $500 per transaction.D. A personal computer was purchased from a non-approved vendor.

Answer: B

 

NEW QUESTION 53
According to HA guidance, the chief audit executive is directly responsible for which of the following?

A. Providing opportunities for all staff auditors to satisfy their professional development requirementsB. Periodically reviewing and approving the internal audit charierC. Establishing the objectives scope and plan for each engagementD. Maintaining a quality assurance program even in the absence of management support

Answer: B

 

NEW QUESTION 54
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