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NEW QUESTION 28
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
- A. An information and communication process.
- B. A monitoring process.
- C. A strategic objective-setting process.
- D. A risk assessment process.
Answer: D
NEW QUESTION 29
Following a quality assurance review of a small internal audit activity, the external reviewer and the chief audit executive (CAE) cannot agree on the importance of several deficiencies noted during the review. Which of the following would be the most appropriate next step for the reviewer to take?
- A. Request arbitration from the audit committee to resolve discrepancies prior to issuing the final report
- B. Issue the report to senior management, noting the deficiencies for immediate resolution.
- C. Issue the report, noting the deficiencies with comments that address the areas of disagreement.
- D. Remove the areas of disagreement from the scope of the engagement and seek informal compromises with the CAE.
Answer: A
NEW QUESTION 30
Which of the following would be considered an indicator that an organization’s ethics program is not yet well developed?
- A. The organization’s code of ethics and related compliance policy are reviewed annually for potential updates.
- B. Disciplinary actions for ethics compliance violations are reviewed by the internal audit activity for consistency.
- C. The board of directors reviews ethics oversight metrics for violations and compliance.
- D. Communication of ethics compliance expectations is the responsibility of employees’ direct managers.
Answer: D
NEW QUESTION 31
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