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NEW QUESTION 50
Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
Experience of the engineer in the type of work being considered.
Compensation or other incentives that the engineer may receive.
The extent of other ongoing services that the engineer may be performing for the organization.

• A. 1 and 4 only
• B. 1,2,and4 only
• C. 3 and 4 only
• D. 2 and 3 only

Answer: B

NEW QUESTION 51
----
When comparing an organization's current performance to that of the prior year, an internal auditor found that:
Total labor costs had increased.
More overtime costs had been incurred.
The total number of workers had increased.
Net income was 10 percent lower.
Based solely on this information, which of the following is a valid conclusion?

• A. Total labor hours increased.
• B. Net income per worker decreased.
• C. Wage rates increased.
• D. Worker efficiency decreased.

Answer: B

NEW QUESTION 52
Some of an organization's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be:

• A. Edit controls on the payroll file.
• B. Reconciliation of paychecks to the bank account.
• C. Appropriate segregation of duties for batch approval.
• D. Validation of hash totals.

Answer: D

Explanation:
Section: Volume C

NEW QUESTION 53
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