Which of the following best ensures the independence of the internal audit activity?
1.The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2.The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3.The internal audit charter requires the CAE to report functionally to the audit committee.
A chief audit executive would most likely use risk assessment for audit planning because it provides:
The chief audit executive for an organization has just completed a risk assessment process,identified the areas with the highest risk,and assigned an audit priority to each. Which of the following statements is true and consistent with the International Professional Practices Framework?
I.Items should be ranked in the order of quantifiable dollar exposure to the organization.
II.The audit priorities should be in order of major control deficiencies.
III.The risk assessment,though quantified,is the result of professional judgments about both exposures and probability of occurrences.
In order to be organizationally independent, the chief audit executive should report administratively to the [List A] and functionally to the [List B].
[List A]
[List B]
Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?
