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NEW QUESTION 31
Which of the following is an example of a detective control?
- A. Automatic shut-off valve.
- B. Auto-correct software functionality.
- C. Safety instructions.
- D. Confirmation with suppliers and vendors.
Answer: D
NEW QUESTION 32
Which of the following statements accurately describes an internal auditor's responsibility with regard to due professional care?
- A. An internal auditor should express an opinion only when consensus with top management has been achieved.
- B. An internal auditor's opinion should be based on experience and free of all bias.
- C. An internal auditor's opinion should be based on factual evidence.
- D. An internal auditor's opinion should be limited to the effectiveness of internal controls.
Answer: C
NEW QUESTION 33
An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter?
- A. The job specifications and descriptions of the internal audit staff.
- B. The purpose of the IAA.
- C. The IAA's right to have unrestricted access to functions, records, personnel, and physical property.
- D. A detailed audit plan or program for the year.
Answer: C
NEW QUESTION 34
Which of the following is most likely to be considered a control weakness?
- A. Purchase orders are typed by the purchasing department using prenumbered forms.
- B. Department managers initiate purchase requests that must be approved by the plant superintendent.
- C. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
- D. Buyers promptly update the official vendor listing as new supplier sources become known.
Answer: D
NEW QUESTION 35
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