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NEW QUESTION # 10
What is the primary purpose of a preliminary survey?
Answer: B
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Preliminary Survey Purpose: The survey is conducted to gather sufficient information to understand the process, environment, and related risks. This understanding serves as a foundation for planning the engagement.
NEW QUESTION # 11
An internal auditor was assigned to a payroll process audit engagement. At which stage ofengagement planning would the auditor conduct a risk assessment?
Answer: C
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Risk Assessment in Planning: Conducting a risk assessment typically follows documentation of the process, as understanding the process provides the necessary context for identifying and evaluating risks.
NEW QUESTION # 12
Which of the following elements of the Fraud Triangle is directly under the organization's control?
Answer: B
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Opportunity: Organizations can reduce fraud risk by implementing strong internal controls, which limit opportunities for fraud. Examples include segregation of duties, access restrictions, and audit trails.
NEW QUESTION # 13
Internal and external benchmarking by the internal audit activity are examples of which of the following?
Answer: C
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Analytical Procedures: Benchmarking compares an organization's performance against internal or external standards, which is a core analytical procedure used to assess efficiency, effectiveness, or best practices.
NEW QUESTION # 14
During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?
Answer: A
Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Understanding the Process: The mission, strategic objectives, and key performance indicators (KPIs) provide a foundational understanding of the process under review and how it aligns with organizational goals. This information helps identify critical areas for assessment during the audit.
NEW QUESTION # 15
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