An experienced internal auditor is planning an assurance engagement of the organization's sales activities. During process walkthroughs and interviews, many sales representatives expressed concerns about management's escalating demands to meet the organization's sales goals. According to the MA guidance, which of the following is the best application of due professional care in planning the engagement?
Which combination of strategies would provide the best evaluation of the effectiveness of the organization's risk assessment activity?
1. Interview staff at various levels to discuss the organization's objectives, significant risks, and risk appetite.
2. Review board meeting minutes to determine whether the significant risks identified are communicated timely to the board.
3. Evaluate the adequacy and timeliness of management remediation actions by reviewing the control design, testing the controls, and reviewing monitoring procedures.
4. Review the professional development plans of internal audit staff to ensure all are competent to assess the organization's risk assessment activity.
Which of the following statements is true regarding how the scope of a consulting engagement should be established?
In a small company with a small budget, the board and senior management asked the chief audit executive (CAE) to develop specific controls prompted by a new regulatory requirement affecting a specific process. The CAE was also directed to report functionally to senior management. An audit engagement on this process was already set in the internal audit plan. Which of the following represents an impairment to the internal audit activity's independence?
TESTED 17 May 2024
