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NEW QUESTION 52
Which of the following would be an appropriate outcome of a quality assurance and improvement program in an internal audit activity?
1. Modification of resources.
2. Corrections to procedures.
3. Changes in processes.
4. Implementation of new technology.
- A. 1, 2, and 3 only
- B. 3 and 4 only
- C. 2 and 4 only
- D. 1, 2, 3, and 4
NEW QUESTION 53
Which of the following is an example of sharing risk?
- A. An organization redesigned a business process to change the risk pattern.
- B. An organization sold an unprofitable business unit to its competitor.
- C. An organization outsourced a portion of its services to a third-party service provider.
- D. In order to spread total risk, an organization used multiple vendors for critical materials.
NEW QUESTION 54
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?
- A. The purchasing agents have convinced management to adopt a policy of paying vendors on amore timely basis in order to avoid incurring penalty charges.
- B. The standard of living of one of the purchasing agents has increased.
- C. The internal control structure has significant weaknesses.
- D. The cost of goods procured seems to be excessive in comparison with previous years.
NEW QUESTION 55