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NEW QUESTION 26
Which of the following is an advantage of an interim report?
I.An interim report provides timely feedback to the audit engagement client.
II.
An interim report provides a mechanism for communicating information on red flags promptly while they are being investigated.
III.
An interim report provides an opportunity for auditor follow-up of findings before the engagement is completed.
IV.
An interim report increases the probability that corrective action will be initiated more quickly.
- A. I, III, and IV only.
- B. I, II, III, and IV.
- C. I and IV only.
- D. II and III only.
Answer: A
NEW QUESTION 27
A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?
I. Recycling and reuse.
II. Elimination at the source.
III. Energy conservation.
IV. Recovery as a usable product Treatment.
- A. I, III, IV, II, V.
- B. III, IV, II, V, I.
- C. V, II, IV, I, III.
- D. IV, II, I, III, V.
Answer: D
NEW QUESTION 28
Which of the following methods would an auditor most likely use to document a complex sales order process?
- A. Develop a horizontal flowchart, with supporting documentation for key control points.
- B. Create a critical path method chart, noting the processes involved for each step.
- C. Utilize a systems narrative, which can be updated during subsequent audits.
- D. Perform a process review, assigning time and cost to each step of the process to develop a hierarchy flowchart.
Answer: A
Explanation:
Section: Volume B
NEW QUESTION 29
When determining if appropriate resources exist to achieve engagement objectives, which of the following factors should a chief audit executive consider?
1.Nature and complexity of the audit engagement.
2.Time constraints.
3.Effectiveness of the audit committee.
4.Availability of resources for the engagement.
- A. 1, 3, and 4 only
- B. 1, 2, and 3 only
- C. 1, 2, and 4 only
- D. 1 and 2 only
Answer: C
NEW QUESTION 30
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