Which of the following would be the best source of information for a chief audit executive to use in planning future audit staff requirements?

• A.Discussions of audit needs with executive management and the audit committee.
• B.Review of audit staff education and training records.
• C.Interviews with existing audit staff.
• D.Review of audit staff size and composition of similar-sized companies in the same industry.

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Which of the following risk factors is most subjective?

• A.Prior audit findings.
• B.Competency of operating management.
• C.Changes in staff, systems, or the environment.
• D.Size of the unit being audited.

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The first stage in the development of a crisis management program is to:

• A.Conduct a risk analysis.
• B.Practice the response to a crisis.
• C.Formulate contingency plans.
• D.Create a crisis management team.

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Which of the following is the best way to detect fraud?

• A.Activate a whistleblower hotline.
• B.Perform background investigations.
• C.Conduct anti-fraud training.
• D.Implement process controls.

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In preparing for an audit of the footwear division of a major retail organization, an internal auditor gathered the following information about the organization's stores:

In addition to labor costs, the other costs associated with each store are leasing and maintenance expenses. Which of the following is a valid conclusion?

• A.Gross margin is directly related to the size of the store.
• B.Employees are less productive in larger stores.
• C.Cost of goods sold is directly related to the size of the store.
• D.Sales per store are directly related to the size of the store.

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