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NEW QUESTION 38
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

  • A. Review the trend in receivables write-offs.
  • B. Check for evidence of credit approval on a sample of customer orders.
  • C. Ask the credit manager about the effectiveness of the function.
  • D. Observe the process.

Answer: A

Explanation:
Section: Volume A

 

NEW QUESTION 39
Which of the following is most important for an internal auditor to consider when developing an approach for an audit engagement in a foreign country?

  • A. Currency exchange rates, as they relate to internal audit-related expenses.
  • B. The effects of subtle language nuances on translations.
  • C. Differences in typical working hours, compared to other countries.
  • D. Accepted practices that may be illegal in other countries.

Answer: D

 

NEW QUESTION 40
Which of the following statements is not true?

  • A. It is inappropriate for internal auditors to provide consulting services relating to operations for which they had previous responsibilities.
  • B. A party outside the internal audit activity should oversee assurance engagements for functions over which the chief audit executive has responsibility.
  • C. The chief audit executive should decline a consulting engagement if the internal audit staff lacks the knowledge, skills, or other competencies needed to perform all or a part of the engagement.
  • D. The nature of consulting services that are performed by the internal audit activity should be defined in the audit charter.

Answer: A

 

NEW QUESTION 41
……

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