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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

Answer: D

 

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.

Answer: C

 

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.

Answer: A

 

NEW QUESTION 55
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