Which of the following costs would be incurred in an inventory stockout?

• A.Lost sales, lost customers, and safety stock.
• B.Lost sales, lost customers, and backorder.
• C.Lost customers, safety stock, and backorder.
• D.Lost sales, safety stock, and backorder.

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According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

• A.The CAE can release prior internal audit reports with the approval of the board and senior management.
• B.The CAE can release prior information provided it is as originally published and distributed within the organization.
• C.The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.
• D.The CAE can only release prior information outside the organization when mandated by legal or statutory requirements.

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Which of the following statements is true pertaining to interviewing a fraud suspect?
1. Information gathered can be subjective as well as objective to be useful.
2. The primary objective is to obtain a voluntary written confession.
3. The interviewer is likely to begin the interview with open-ended questions.
4. Video recordings always should be used to provide the highest quality evidence.

• A.4 only
• B.2 and 4
• C.1 and 3
• D.1 only

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Organization X owns a 38 percent equity stake in Organization Y.
Which of the following statements is true regarding the financial treatment for this relationship?

• A.X must consolidate the financial statements for both organizations
• B.Y should be listed as an investment asset on X's balance sheet
• C.Y should not be reported by X as X does not have a controlling interest
• D.Y should be reported as a footnote to X's financial statements

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Which of the following statements is true regarding the roles and responsibilities associated with a corporate social responsibility (CSR) program?

• A.Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with the CSR program.
• B.The internal audit activity is responsible for ensuring that CSR principles are integrated into the organization's policies and procedures.
• C.Every employee has a responsibility for ensuring the success of the organization's CSR objectives.
• D.The board has overall responsibility for the internal control processes associated with the CSR program.

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