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NEW QUESTION 52
Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?

  • A. CAATs are more objective than the traditional methods in interpreting the results.
  • B. CAATs can process the results faster and thus give a higher level of assurance.
  • C. CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.
  • D. CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.

Answer: D

 

NEW QUESTION 53
Which of the following is least likely to enhance the independence of an internal audit activity?

  • A. The existence of a formal written charter for the internal audit activity.
  • B. A direct reporting relationship to the audit committee.
  • C. Submission of an annual internal audit work plan to the audit committee.
  • D. Adherence to the organization’s position classification structure.

Answer: D

 

NEW QUESTION 54
A quantitative risk assessment model has all of the following advantages except:

  • A. Providing documentation for the chief audit executive, who must defend the long-range audit plan.
  • B. Accommodating a large number of risk factors in the assessment.
  • C. Removing the need for judgment on the part of the chief audit executive.
  • D. Providing a systematic method of applying weightings to risks and priorities.

Answer: C

 

NEW QUESTION 55
A member of the IT department transfers to the internal audit department. A few months after transferring, the new auditor volunteers to assist in an assurance engagement for the IT department. According to the Standards, how should the chief audit executive respond?

  • A. Decline the offer because the internal auditor recently transferred from the IT department.
  • B. Accept the offer because the internal audit charter grants the internal auditor authority to maintain objectivity.
  • C. Accept the offer because the internal auditor maintains an independent mental attitude and is therefore objective.
  • D. Decline the offer because the internal auditor subordinated professional judgment, and objectivity is therefore impaired.

Answer: A

Explanation:
Section: Volume D

 

NEW QUESTION 56
What is the purpose of a secondary control?

  • A. It helps to ensure the completeness and accuracy of automated controls in a system environment.
  • B. It partially reduces the residual risk level when a key control does not operate effectively.
  • C. It replaces primary controls that are either ineffective or cannot fully mitigate a risk.
  • D. lt combines with other controls to help reduce significant risk exposures to an acceptable level.

Answer: D

 

NEW QUESTION 57
……

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