Which of the following is an effective way for an internal auditor to improve communications with the client during a contentious audit?

• A.Encourage the client to participate as a partner in the decision-making process to determine the changes that need to be made.
• B.Clearly explain to the client the role of the internal audit activity in the change process.
• C.Obtain the support of the board of directors for proposed changes before discussing the changes with operating management.
• D.Speak privately with key client personnel immediately after proposed changes are announced to address their concerns.

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Which sampling plan requires no additional sampling once the first error is found?

• A.Stop-or-go sampling.
• B.Stratified sampling.
• C.Attributes sampling.
• D.Discovery sampling.

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Checklists used to assess audit risk have been criticized for all of the following reasons except:

• A.Inappropriately implying equal weight to each item on the checklist.
• B.Decreasing the uniformity of data acquisition.
• C.Providing a false sense of security that all relevant factors are addressed.
• D.Being incapable of translating the experience or sound reasoning intended to be captured by each item on the checklist.

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When determining if appropriate resources exist to achieve engagement objectives, which of the following factors should a chief audit executive consider?
Nature and complexity of the audit engagement.
Time constraints.
Effectiveness of the audit committee.
Availability of resources for the engagement.

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

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Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

• A.Lump-sum contract.
• B.Cost-plus contract.
• C.Unit-price contract.
• D.Indefinite delivery contract.

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