During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should:
During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?
Which type of control is designed to directly mitigate internal and external risks at the organization wide level, furthering the achievement of many overall organizational objectives?
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?
A chief audit executive (CAE) for a specialty retailer is asked by management to review the controls in place to manage their electronic funds transfer process.The internal audit activity has no experience with similar engagements. What is the most appropriate course of action for the CAE to take?
A manufacturing firm uses hazardous materials in the production of its products. An audit of the firm's processes related to hazardous materials should include.I. Recommending an environmental management system as part of policies and procedures.II. Verifying the existence of tracking records for these materials from creation to destruction.III. Using consultants to avoid self-incrimination of the firm in the event illegalities were detected in an environmental audit.IV. Evaluating the cost provided for in an environmental liability accrual account.
