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NEW QUESTION 31
Which of the following events would most likely cause the chief audit executive to consider changing the current year’s audit plan?
1. The government announced that new regulatory requirements will be introduced in the coming years which may significantly impact the organization’s primary product.
2. A major competitor unexpectedly introduced a new model at a lower price point to compete with the organization’s market leading product.
3. The organization announced a new joint venture with a long time corporate partner to introduce a new product with development costs and sales beginning next fiscal year.
4. An equal joint venture partner filed a lawsuit against the organization and requested that the court issue an immediate suspension of future product shipments.
- A. 2 and 4 only
- B. 3 and 4 only
- C. 1 and 2 only
- D. 1 and 3 only
Answer: A
Explanation:
Section: Volume D
NEW QUESTION 32
Ordinarily, which of the following would not be an objective of an internal audit quality assurance review?
- A. Ensuring the adequacy of the goals, mission and vision of the internal audit activity.
- B. Ensuring that the internal audit activity meets the external auditor’s expectations.
- C. Ensuring that the internal audit activity has an audit charter approved by the board of directors.
- D. Complying with specific standards for the professional practice of internal auditing.
Answer: B
Explanation:
Section: Volume D
NEW QUESTION 33
What type of audit engagement would be the most appropriate to determine how an organization could be more profitable in the long term?
- A. Performance audit
- B. Quality audit
- C. Operational audit
- D. Compliance and financial audit
Answer: C
NEW QUESTION 34
Which of the following actions is related to the preliminary survey process?
- A. Preparing the engagement work program.
- B. Completing a detailed test of controls.
- C. Determining if controls are effective.
- D. Identifying the current controls.
Answer: D
NEW QUESTION 35
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