During the quarterly review of the internal audit activity's performance, the chief audit executive (CAE) notes that actual engagement hours consistently exceed the budget. Which of the following strategies would most likely help the CAE address this problem?
* The budget should consider time spent on similar engagements.
* The budget should consider the proficiency of the assigned auditors.
* The budget estimate should provide for unexpected delays.
* The budget should be specific as to time for each work assignment.
Due to the expanded role of internal audit in the organization, the chief audit executive (CAE) of a construction company decides to employ the services of an outsourced audit service provider to augment the internal audit staff. What does the CAE need to consider in determining whether the outsourced audit service provider possesses the necessary knowledge, skills and other competencies to perform an audit engagement?
Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?
Which of the following represents appropriate evidence of supervisory review of engagement workpapers?
I.A supervisor's initials on each workpaper.
II.
An engagement workpaper review checklist.
III.
A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.
IV.
Performance appraisals that assess the quality of workpapers prepared by auditors.
