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NEW QUESTION 54
A chief audit executive has noticed that staff auditors are presenting more oral reports to supplement written reports. The best reason for the increased use of oral reports is that they:

• A. Can be prepared using a flexible format and reduce the information included in the written report.
• B. Can be delivered in an informal manner without preparation.
• C. Reduce the amount of testing required to support audit findings.
• D. Permit auditors to counter arguments and provide additional information that the audience may require.

Answer: D

NEW QUESTION 55
Which of the following is a primary reason for an internal auditor to use a risk and control questionnaire when auditing financial processes?

• A. To collect as much financial data as possible before engagement fieldwork begins.
• B. To gam an understanding of the control environment
• C. To test the effectiveness of financial controls in an efficient and relatively inexpensive way
• D. To facilitate the quantification of financial data obtained

Answer: C

NEW QUESTION 56
When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?

• A. Existence of evidence of fraud.
• B. Organizational structure.
• C. Management's risk appetite.
• D. Impact of and exposure to fraud.

Answer: D

NEW QUESTION 57
An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
"A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted." The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

• A. Removal of the employee names to protect their confidentiality.
• B. Listing of the actual documents examined for each employee.
• C. Use of audit verification symbols to show that each file was examined.
• D. Justification for the sample size.

Answer: D

Explanation:
Section: Volume A

NEW QUESTION 58
Which of the following should management action plans include at a minimum?

• A. An implementer for the action plan
• B. Detailed procedures for the action plan
• C. The internal auditor's next review date of the action plan
• D. An owner of the action plan

Answer: D

NEW QUESTION 59
......

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