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NEW QUESTION 45
Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?
- A. Set clear performance standards for internal auditors and the internal audit activity.
- B. Apply problem-solving techniques for routine situations.
- C. Maintain industry-specific knowledge appropriate to the audit engagements
- D. Manage and support a quality assurance and improvement program.
Answer: A
NEW QUESTION 46
Which of the following elements should an auditor recommend for inclusion in an organization's code of ethics?
I.Ethics should vary with local customs in the organization's foreign operations.
II.Whistle-blowing should be discouraged because it can cause distrust among employees and false accusations which waste organizational resources on investigations.
III.Ethical behavior should not be incorporated into performance evaluations because it is too subjective and controversial.
- A. None of the above.
- B. II only.
- C. I, II, and III.
- D. I only.
Answer: A
NEW QUESTION 47
In order to ensure that the internal auditors have the objectivity required by the Standards, the chief audit executive should:
- A. Demonstrate willingness to include in engagement final communications all matters believed to be important.
- B. Carefully assign personnel to individual audit engagements and require auditors to disclose all conflicts of interest.
- C. Appraise each auditor's performance on each audit assignment.
- D. Require all auditors to sign statements attesting to their independent mental attitudes and honest belief in their work product.
Answer: B
NEW QUESTION 48
In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?
- A. It is an uneconomical approach to obtaining information.
- B. It creates apprehension about the audit engagement.
- C. It involves the engagement client's supervisory personnel in the audit.
- D. It is only useful for audits of distant locations.
Answer: C
Explanation:
Section: Volume A
NEW QUESTION 49
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