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NEW QUESTION 35
The scope of a consulting engagement performed by internal auditors should:

• A. Exclude areas that might be the subject of subsequent assurance engagements.
• B. Be sufficient to address the objectives agreed upon with the client.
• C. Be limited to activities within the current operating period.
• D. Be preapproved in conjunction with the annual plan of consulting engagements.

Answer: B

NEW QUESTION 36
Management has asked the internal audit activity to perform an operational audit of a division that recently reported an increase in expenditures in addition to a decrease in profits. However, existing internal audit resources are currently engaged in a legal compliance audit. Which factor would be considered least important in deciding whether resources should be removed from the legal compliance audit to the operational audit?

• A. The probability that the legal compliance audit will detect fraud.
• B. The results of the external auditor's most recent financial audit.
• C. The potential for regulatory fines associated with the legal compliance audit.
• D. The increase in expenditures at the division over the past year.

Answer: B

NEW QUESTION 37
Which of the following is not true regarding the management of internal audit resources?

• A. Resources include external service providers and computer-assisted audit techniques.
• B. The adequacy of internal audit resources is ultimately a board responsibility.
• C. A minimum level of information technology knowledge is necessary.
• D. Skills availability must be aligned with financial constraints.

Answer: D

NEW QUESTION 38
An internal auditor is conducting an assessment of the organization's fraud controls. Which of the following would not be considered a preventive control?
1. Daily report that identifies unsuccessful system log-in attempts.
2. Weekly management communication with tips on identifying possible fraud.
3. E-mail alert sent to management for checks issued over $100,000.00.
4. New hire training to explain fraud and employee misconduct.

• A. 1 and 2 only
• B. 3 and 4 only
• C. 2 and 4 only
• D. 1 and 3 only

Answer: D

NEW QUESTION 39
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