During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?

• A.Return the invoice to the vendor for correction.
• B.Pay the amount billed and adjust the inventory account for the difference.
• C.Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.
• D.Issue an exception report.

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An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?

• A.The chief audit executive has the mandate to conduct risk assessments and give assurance to the audit committee.
• B.Senior management is accountable to the board for monitoring the system of internal controls.
• C.The audit committee, on behalf of the board, has overall responsibility for the risk management process in the organization.
• D.The audit committee should get assurance on the adequacy and effectiveness of the risk management process from the CRO.

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An organization decides to create an internal audit function and hires a new chief audit
executive (CAE). Which of the following should the CAE first consider when developing the internal audit process?

• A.Requirements of the external auditors to ensure an efficient coordination of audit effort.
• B.Sufficient resources to adequately meet the needs of the annual audit plan.
• C.An appropriate training plan for audit staff.
• D.Alignment of internal audit objectives with the organization's strategic plan.

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During which of the following systems development stages would it be most useful for an internal auditor to be involved?

• A.Testing and user acceptance.
• B.Coding and testing.
• C.User acceptance and post-implementation.
• D.Design and implementation.

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Which of the following processes real-transaction data through auditor-developed test programs?

• A.Generalized audit software.
• B.Mapping.
• C.Tracing.
• D.Parallel simulation.

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