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NEW QUESTION 27
An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

A. Shareholders and investors.B. Working conditions.C. Employees' families.D. Marketplace competition.

Answer: C

 

NEW QUESTION 28
An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?

A. Management modifies the product division to minimize errors.B. Management sells the product division to a competitor.C. Management outsources the product division to a third party.D. Management allows the product division to remain unchanged.

Answer: A

 

NEW QUESTION 29
Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

A. A Bedford analysis of orders filled to average delivery times.B. Queuing theory to assess potential bottlenecks in the process.C. Decision trees rating actual performance against requirements.D. A program evaluation and review technique chart.

Answer: B

 

NEW QUESTION 30
As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

A. Professional objectivity.B. Individual proficiency.C. Organizational independence.D. Due professional care.

Answer: A

 

NEW QUESTION 31
What should the internal auditor's role be in assessing the organization's ethical climate?

A. Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and B.
processes for achieving the desired level of legal and ethical compliance.B. Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.C. Perform background checks of potential new employees before they are hired by the organization.

Answer: B

 

NEW QUESTION 32
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