The following audit observation was included in the final audit report:
"Our review concluded that bank reconciliation statements for March and April did not show evidence of supervisory review. We recommend strict compliance with the controller's manual, which requires the department head to place their initials on the reconciliation statements to document their review."
Which of the following attributes are missing from the above audit observation?
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Criteria. Condition. Cause. Effect.
Management has asked the internal audit activity to perform an operational audit of a division that recently reported an increase in expenditures in addition to a decrease in profits. However, existing internal audit resources are currently engaged in a legal compliance audit. Which factor would be considered least important in deciding whether resources should be removed from the legal compliance audit to the operational audit?
With which of the following would the internal audit activity discuss findings, conclusions and recommendations prior to issuance of internal audit report?
Business unit management.
Chief audit executive.
Audit committee.
Chief executive officer.
Which of the following factors would increase the confidence level in a variables sampling plan?
I. A larger sample size.
II. A stratified sample.
III.
A larger standard deviation.
Which of the following are typical steps in the design of an organization's performance measurement system?
