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NEW QUESTION 38
When reviewing operational risk for a department whose manager adopts a laissez-faire style of leadership, it is most important for the internal auditor to verify that:
- A. The manager considers employees' input when designing new procedures.
- B. Employee decisions follow department and company guidelines.
- C. Management has adopted an open-door policy to assist with communication.
- D. Employees are empowered to deal with unusual or emergency situations.
NEW QUESTION 39
A company has established its environmental audit activity as part of its legal department rather than part of its internal audit activity, which reports to the audit committee. The board has requested that the chief audit executive (CAE) provide an annual opinion on whether environmental risks are being properly addressed. In these circumstances, the CAE should recommend to the audit committee that the internal audit activity:
- A. Discuss with the environmental auditors the results of their reviews.
- B. Review the recommendations in all environmental audit reports.
- C. Include a review of environmental issues in some internal audit engagements.
- D. Periodically carry out a quality assessment of the environmental audit activity.
NEW QUESTION 40
What information should the internal quality assessment of the internal audit activity communicate to the chief audit executive?
- A. Performance appraisals of the internal audit staff.
- B. Confirmation that past audit recommendations have been implemented.
- C. Detailed objectives for internal audit engagements.
- D. Evaluation of the adequacy of internal audit policies and procedures.
Section: Volume D
NEW QUESTION 41