Which of the following factors affects the control risk of a company?

• A.Potential problems like technological obsolescence.
• B.Unusual pressures on management.
• C.Complex accounts that require expert valuations.
• D.Segregation of duties.

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Internal auditors can benefit from a strong relationship with the external auditors because external auditors can:

• A.Provide internal auditors with an independent and knowledgeable viewpoint.
• B.Concur with the internal auditors' reports and thus improve the quality of assurance provided to management.
• C.Increase the effectiveness of internal control sampling techniques.
• D.Assist the internal auditor by providing information obtained from similar audits with other clients.

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Which of the following actions should an organization take to detect an emerging risk of potential fraud?

• A.Establish an anonymous platform for reporting suspected unethical behaviors
• B.Adopt reward and recognition programs that promote good behaviors
• C.Institute periodic educational training on expected ethical behaviors
• D.Undertake background checks for new employees as part of the hiring process

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While conducting fieldwork, an internal auditor decides to utilize standard operating procedure (SOP) questionnaires to gather information about a human resources department. Which of the following is an advantage of this method?

• A.SOP questionnaires are the most comprehensive technique for data gathering in fieldwork.
• B.SOP questionnaires verify that a department is efficient and effective.
• C.SOP questionnaires generally do not need to be cleared by management of the audited department.
• D.SOP questionnaires are useful in identifying discrepancies and educating clients.

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A quantitative risk assessment model has all of the following advantages except:

• A.Accommodating a large number of risk factors in the assessment.
• B.Providing documentation for the chief audit executive, who must defend the long-range audit plan.
• C.Providing a systematic method of applying weightings to risks and priorities.
• D.Removing the need for judgment on the part of the chief audit executive.

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