Which of the following would be most relevant regarding the internal control environment?
According to IIA guidance, which of the following risk management process evaluation findings would the internal audit activity consider most effective?
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques(CAATs) to be used during an audit?1. Acceptance of CAATs findings by entity management.2. Computer knowledge and expertise of the auditor.3. Time constraints.4. Level of audit risk.
During an audit engagement in an insurance company, an internal auditor discovered that senior management had purposely misclassified $200, 000 in assets on financial statements submitted to regulatory authorities in order to avoid significant statutory penalties. To remain in compliance with the IIA Code of Ethics, what would be the most appropriate action for the auditor to take?
Which of the following scenarios exemplifies a potential internal control weakness?
During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization.Division management views the employee's actions as extra incentive to retain the employee.A decision to include the employee's action in the engagement final communication would be:1. A violation of the IIA Code of Ethics.2. A violation of the reporting requirements in the Standards.3. Justified and necessary, according to the IIA Code of Ethics and Standards.
