NEW QUESTION 291
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

NEW QUESTION 292
Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?

NEW QUESTION 293
According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management’s response to audit recommendations?

NEW QUESTION 294
Management requested the chief audit executive (CAE) to include an audit of the organization’s health and safety program in next year’s annual audit plan. However, the internal audit department has no expertise in this area. Which of the following would be the most appropriate action by the CAE?

NEW QUESTION 295
An organization has recently incurred significant cost overruns on one of its construction projects.
Management suspects that these overruns were caused by the contractor improperly charging for costs related to contract change orders. Which of the following procedures are appropriate for testing this suspicion?
1. Determine if the contractor has received proper approval of change orders from management.
2. Determine if the contractor has billed for original contract work cancelled by the change orders.
3. Determine if the contractor has charged change orders with costs already billed to the original contract.
4. Determine if the contractor has been paid for change orders that have not yet been completed.

NEW QUESTION 296
Which of the following is the most important concept to be included in a consulting engagement agreement?

NEW QUESTION 297
Which of the following best illustrates the primary focus of a risk-based approach to control self-assessment?

NEW QUESTION 298
New environmental regulations require the board to certify that the organization’s reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization’s compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

NEW QUESTION 299
Which of the following is a justifiable reason for omitting advance client notice when planning an audit engagement?

NEW QUESTION 300
Which of the following is true regarding roles and responsibilities in risk management processes?

NEW QUESTION 301
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?
I. Verify that the contractor has not charged change orders with costs that have already been billed to the original contract.
II. Determine if the contractor has billed for original contract work that was canceled as a result of change orders.
III.
Verify that the change orders were properly approved by management.

NEW QUESTION 302
Which of the following is a red flag associated with fictitious revenues?

NEW QUESTION 303
An auditor evaluating excessive product rejection rates should investigate:
I. Communication between sales and production departments on sales returns.
II. Volume of product sales year-to-date in comparison to prior year-to-date.
III. Changes in credit ratings of customers versus sales to those customers.
IV. Detailed product scrap accounts and accumulations.

NEW QUESTION 304
As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department’s files. On 44 of the days, the log contained a sufficient number of shipments to meet the department’s daily quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas. Which of the following is true about the auditor’s conclusion?

NEW QUESTION 305
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?

NEW QUESTION 306
The chief audit executive established an internal audit activity (IAA) performance standard requiring all audit reports to be issued within 48 hours of the exit meeting with the client. Which of the following describes an exit meeting strategy that would best help the IAA meet this performance standard?

NEW QUESTION 307
Questions used to interrogate individuals suspected of fraud should: