Why should internal auditors develop a strong relationship with the external auditors?
Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results?
1. Disregard a certain risk because management and the board accepted the risk in the past.
2. Abdicate the responsibility for a particular risk because it is not part of the audit plan.
3. Obtain agreement from senior management that unresolved audit issues will be reported to the board.
Request corrective action from management in writing.
An auditor evaluating excessive product rejection rates should investigate:
I.Communication between sales and production departments on sales returns.
II.
Volume of product sales year-to-date in comparison to prior year-to-date.
III.
Changes in credit ratings of customers versus sales to those customers.
IV.
Detailed product scrap accounts and accumulations.
Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?
