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Which of the following situations justifies the release of an interim report to management and the board?
The internal auditor is convinced that the audit observations require immediate attention.
The internal auditor would like to communicate a change in engagement scope for the activity under review.
The internal auditor notes that the engagement may extend over a longer time period.
The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.
A. 2 and 3 only
B. 2, 3, and 4 only
C. 1, 2, and 3 only
D. 1 and 3 only
Answer: C
NEW QUESTION # 539
After completing a fraud investigation but before publishing a formal written report, the chief audit executive should submit a draft of the final report to the organization's:
A. Audit committee chairperson.
B. Legal counsel.
C. External auditor.
D. Chief executive officer.
Answer: B
NEW QUESTION # 540
Which of the following factors would increase the confidence level in a variables sampling plan?
I. A larger sample size.
II. A stratified sample.
III. A larger standard deviation.
A. I and II only
B. I and III only
C. I, II, and III
D. II and III only
Answer: A
Explanation:
Section: Volume A
NEW QUESTION # 541
When establishing a quality assurance and improvement program, the chief audit executive should ensure the program is designed to accomplish which of the following objectives?
1. Add value.
2. Improve operations.
3. Provide assurance that the internal audit activity conforms with the Standards.
4. Provide assurance that the internal audit activity conforms with the IIA Code of Ethics.
A. 1, 2, 3, and 4
B. 1 only
C. 1 and 2 only
D. 1 and 3 only
Answer: A
Explanation:
A quality assurance and improvement program (QAIP) established by the chief audit executive (CAE) should ensure that the internal audit activity (IAA) adheres to the International Standards for the Professional Practice of Internal Auditing (Standards) and the IIA Code of Ethics. It should also aim to add value and improve the organization's operations. This comprehensive approach ensures that the internal audit function is not only compliant but also effective in enhancing the overall governance, risk management, and control processes within the organization.
:
IIA Standard 1300: Quality Assurance and Improvement Program.
IIA Standard 1320: Reporting on the Quality Assurance and Improvement Program.
NEW QUESTION # 542
Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?
A. Develop batch controls over all items received from a particular hospital and process those claims in batches.
B. Use generalized audit software to match the claimant identification number with a master list of valid policyholders.
C. Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.
D. Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.
Answer: D
NEW QUESTION # 543
......
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