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NEW QUESTION # 46

An organization has acquired a new line of business. None of the organization's internal auditors have the required expertise to perform an internal audit of the new business line; therefore, the chief audit executive (CAE) has contracted the services of an external audit firm to perform the engagement. The CAE has assigned a member of the internal audit team to assist the external team with the engagement. According to the Standards, which of the following statements is true regarding supervision of the engagement?

  • A. The CAE is not responsible for the quality of an audit performed by an external firm.
  • B. The CAE should not assign an inexperienced staff member to assist with the engagement.
  • C. The external firm's auditor in charge must defer to the judgment of the CAE for any disputes.
  • D. The CAE may rely upon the external firm's auditor in charge to supervise the engagement.

Answer: C



NEW QUESTION # 47

Management has taken immediate action to address an observation received during an audit of the organization's manufacturing process Which of the following is true regarding the validity of the observation closure?

  • A. Valid closure of an observation ensures it will be included in the final engagement report
  • B. Valid closure requires assurance from management that the original problem will not recur in the future
  • C. Valid closure requires evidence that ensures the corrected process will function as expected in the future
  • D. Valid closure requires the client lo address not only the condition, but also the cause of the condition

Answer: C



NEW QUESTION # 48

According to IIA guidance, organizations have the most influence on which element of fraud?

  • A. Incentives.
  • B. Pressure.
  • C. Rationalization.
  • D. Opportunity.

Answer: D

Explanation:

Section: Volume E



NEW QUESTION # 49

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