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NEW QUESTION 21
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most likely be the reason for the high volume of complaints?
- A. Submission of fraudulent expense reports.
- B. Poor controls in the invoice approval processes.
- C. An ineffective customer service department.
- D. Check tampering by an employee.
Answer: D
NEW QUESTION 22
A corporate merger decision prompts the chief audit executive (CAE) lo propose interim changes to the existing annual audit plan to account for emerging risks Which of the following is the most appropriate action for the CAE to take regarding the changes made to the audit plan''
- A. Present the revised audit plan directly to the board for approval.
- B. Communicate with the chief financial officer and present the revised audit plan to the CEO tor approval
- C. Communicate with the CEO and present the revised audit plan to the board for approval.
- D. Present the revised audit plan directly to the CEO for approval
Answer: C
NEW QUESTION 23
According to the International Professional Practices Framework, which of the following situations is an indicator of a healthy relationship between the audit committee and the internal audit function?
- A. The CAE sends the audit committee all communications between the internal audit department and the audit client in order to keep the audit committee up to date on the engagement.
- B. The chief audit executive (CAE) has direct access to the audit committee and the board but typically does not interact directly with them unless a material weakness in the control environment is identified.
- C. The CAE does not distribute audit reports to the audit committee. However, the audit committee is made aware of the scope and findings of audits performed.
- D. Whenever a potential audit finding or testing exception is first identified, the audit committee is immediately notified, as well as for any subsequent changes in the status of the engagement.
Answer: C
Explanation:
Section: Volume D
NEW QUESTION 24
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