According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

• A.The accounts payable supervisor, controller, and treasurer.
• B.The accounts payable supervisor, accounts payable manager, and controller.
• C.The accounts payable manager, chief financial officer, and audit committee.
• D.The accounts payable manager, purchasing manager, and receiving manager.

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A bank uses a risk analysis matrix to quantify the relative risk of auditable entities. The analysis involves rating auditable entities on risk factors using a scale of 1 to 10, with 10 representing the greatest risk. A partial list of risk factors and the ratings given to three of the bank's departments is provided below:

Which of the following statements regarding risk in the department is true?

• A.The relative ranking of the departments in order of their risk, from greatest to least risk, is: A; C; B.
• B.The nature of department A's control structure may be justified by the nature of the department's assets and the complexity of its transactions.
• C.As compared to departments A and C, department B has a stronger control system to compensate for the greater complexity of the department's transactions and dollar value of its assets.
• D.The internal audit activity should schedule audits of department B more often than audits of department C because of the relative control strength of department C as compared to department B.

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A chief audit executive (CAE) of a major retailer has engaged an independent firm of information security specialists to perform specialized internal audit activities. The CAE can rely on the specialists' work only if it is:

• A.Carried out using standard review procedures for retailers.
• B.Performed in accordance with the terms of the contract.
• C.Carried out in accordance with the Standards.
• D.Performed under the supervision of the information technology department.

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An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
"A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted." The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

• A.Use of audit verification symbols to show that each file was examined.
• B.Removal of the employee names to protect their confidentiality.
• C.Justification for the sample size.
• D.Listing of the actual documents examined for each employee.

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

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

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