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NEW QUESTION 41
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?

A. A process narrative.B. A walk-through.C. A risk and control matrix.D. A flowchart.

Answer: C

 

NEW QUESTION 42
Who is responsible for setting the risk appetite?

A. Board of directors.B. Chief risk officer.C. External auditors.D. Operations management.

Answer: A

 

NEW QUESTION 43
An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

A. Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.B. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.C. Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.D. Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

Answer: B

 

NEW QUESTION 44
What should the internal auditor's role be in assessing the organization's ethical climate?

A. Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.B. Perform background checks of potential new employees before they are hired by the organization.C. Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and B.
processes for achieving the desired level of legal and ethical compliance.

Answer: A

 

NEW QUESTION 45
While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

A. Immediately withdraw from the audit engagement.B. Proceed with the audit engagement, but do not include the relative's information.C. Disclose in the engagement final communication that the relative is a customer.D. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

Answer: D

 

NEW QUESTION 46
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