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NEW QUESTION 48
During an audit of a foreign subsidiary an internal audit team discovered that products were sold to a prohibited country due to sanctions. What is the best course of action for the internal audit team?

A. Consult with the legal departmentB. Include the facts m the engagement communicationsC. Inform me external auditors of the violation.D. Report the violation to the government regulators

Answer: A

 

NEW QUESTION 49
If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?

A. Imposing risk management processes.B. Taking accountability for risk management.C. Providing consolidated reporting on risks.D. Making decisions on risk responses.

Answer: C

 

NEW QUESTION 50
An internal auditor is researching the laws and regulations related to a city's grant program. Which of the following procedures is least relevant to this task?

A. Reviewing applicable grant agreements.B. Discussing the matter with the city's chief financial officer, legal counsel, or grant administrators.C. Making inquiries of the audit committee about the nature of the grants.D. Reviewing prior-year workpapers and asking officials if there have been any changes.

Answer: C

 

NEW QUESTION 51
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

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

Answer: B

 

NEW QUESTION 52
An internal auditor is testing the controls of a large and complex food production process where quality assurance is critical. Management provides process charts and documentation, but the auditor quickly determines that this information is incomplete and out of date. Which of the following would be the most appropriate course of action for the auditor to follow?

A. Amend the engagement objectives recognizing that important information is not available to protect the engagement's integrity.B. Use the documentation but use observation during the engagement to provide missing information.C. Use the documentation but meet with the production supervisor to obtain updated information before proceeding.D. Defer the audit until management can provide updated charts and documentation as this is their responsibility.

Answer: C

 

NEW QUESTION 53
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