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NEW QUESTION 22
The chief audit executive (CAE) of a multinational entity with highly automated and complex operations has just completed the update of the risk-based audit plan. Interviews with management revealed the introduction of new technology and a significant increase in both the number and severity of technology-based risk exposures. According to the International Professional Practices Framework, which of the following would be the best course of action for the CAE to undertake next?

• A. Arrange for the outsourcing of some technology intensive audit processes and procedures based on the plan changes.
• B. Begin planning to recruit information technology audit specialists and other expert personnel into the internal audit activity.
• C. Develop a detailed audit plan that makes the most efficient use and reallocation of existing internal audit resources.
• D. Evaluate whether appropriate skills and knowledge required to perform the necessary audit work currently exist in the department.

Answer: D

NEW QUESTION 23
Which of the following tasks would be considered unusual for planning a control self-assessment workshop?

• A. Ensuring that managers are willing to accept constructive criticism.
• B. Securing an external subject matter expert to arbitrate disputes.
• C. Conducting interviews to identify relevant issues for the discussion.
• D. Identifying key stakeholders and ensuring they are represented in the group.

Answer: B

NEW QUESTION 24
An employee in the sales department completes a purchase requisition and forwards it to the purchaser. The purchaser places competitive bids and orders the requested items using approved purchase orders. When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?

• A. Examine whether the sales department supervisor approves invoices for payment.
• B. Observe whether the purchase orders are sequentially numbered.
• C. Determine whether the accounts payable department reconciles all purchasing documents prior to payment.
• D. Verify that approvals of purchasing documents comply with the authority matrix.

Answer: A

NEW QUESTION 25
With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?
1. Business unit management.
2. Chief audit executive.
3. Audit committee.
4. Chief executive officer.

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

Answer: A

Explanation:
Section: Volume C

NEW QUESTION 26
An audit of management's quality program includes testing the accuracy of the cost-of-quality reports provided to management. Which of the following internal control objectives is the focus of this testing?

• A. To ensure the reliability and integrity of information.
• B. To ensure the accomplishment of established objectives and goals for operations or programs.
• C. To ensure the economical and efficient use of resources.
• D. To ensure compliance with policies, plans, procedures, laws, and regulations.

Answer: A

NEW QUESTION 27
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