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NEW QUESTION 25
Which of the following enhances the independence of the internal audit activity?
- A. The CAE administratively reports to the board.
- B. The audit committee approves the CAE's annual salary increase.
- C. The chief executive officer approves the internal audit charter.
- D. The chief audit executive (CAE) approves the annual internal audit plan.
Answer: B
NEW QUESTION 26
Which of the following types of social responsibilities is voluntary and guided purely by the organization's desire to make social contributions?
- A. Innovative responsibility.
- B. The bottom of the pyramid responsibility.
- C. Discretionary responsibility.
- D. Ethical responsibility.
Answer: D
NEW QUESTION 27
During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.
Which of the following tests would best help the internal auditor detect fraudulent activity?
- A. Check inventory levels.
- B. Review raw material purchase quantities.
- C. Compare vendor summaries.
- D. Search for gaps in check numbers.
Answer: A
NEW QUESTION 28
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