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NEW QUESTION 45
During follow-up. the internal auditor discovered that operational management did not implement effective actions to address a significant control breach If the issue is left unresolved it may result in regulatory sanctions and damage the organization's reputation What is the most appropriate next step for the chief audit executive to lake?
- A. Implement the recommended control to address the exposure
- B. Ask the regulatory agency to persuade management to address the issue
- C. Report the matter to the board
- D. Discuss the matter with senior management
Answer: D
NEW QUESTION 46
The external auditor has identified a number of production process control deficiencies involving several departments. As a result, senior management has asked the internal audit activity to complete internal control training for all related staff. According to IIA guidance, which of the following would be the most appropriate course of action for the chief audit executive to follow?
- A. Refuse to accept the consulting engagement because it would be a violation of independence.
- B. Collaborate with the external auditor to ensure the most efficient use of resources.
- C. Accept the engagement but hire an external training specialist to provide the necessary expertise.
- D. Accept the engagement even if the audit engagement staff was previously responsible for operational areas being trained.
Answer: D
NEW QUESTION 47
An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?
- A. Evaluate the plant's ability to meet production quotas.
- B. Ascertain the costs of materials purchased.
- C. Compare the planned outputs with the actual outputs.
- D. Review the levels of scrap and rework.
Answer: D
NEW QUESTION 48
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