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NEW QUESTION # 247
When approving the final engagement report, which of the following is most critical?
Answer: A
Explanation:
Section: Volume D
NEW QUESTION # 248
Which of the following engagements is likely to be most appropriate for an organization that is planning an acquisition?
Answer: B
Explanation:
Due diligence engagements are crucial when planning an acquisition, as they evaluate the financial, operational, and legal aspects of the target entity. This ensures informed decision-making and minimizes acquisition risks. Performance engagements (Option A) focus on efficiency and effectiveness of operations, while system security engagements (Option B) and compliance engagements (Option D) do not address the comprehensive assessment required for acquisitions. The CIA syllabus emphasizes due diligence as a specialized type of consulting engagement (Part 2: Section II).
NEW QUESTION # 249
Which of the following is an appropriate activity when supervising engagements?
Answer: B
Explanation:
According to the IIA's Implementation Guide for Standard 2340 - Engagement Supervision1, one of the activities that the chief audit executive or the designated engagement supervisor should perform is to review and approve the engagement work program before the commencement of fieldwork. The engagement work program should be based on the engagement objectives, scope, and approach, and should reflect the risks and controls identified during the planning phase. The engagement work program should also be discussed with the engagement team to ensure that they understand the tasks and procedures to be performed, and to address any questions or concerns. The engagement supervisor should document the approval of the work program and any subsequent changes in the workpapers.
NEW QUESTION # 250
A large investment organization hired a chief risk officer (CRO) to be responsible for the organization's risk management processes. Which of the following people should prioritize risks to be used for the audit plan?
Answer: D
Explanation:
The chief audit executive (CAE) should prioritize risks to be used for the audit plan. Although the CAE is not accountable for managing risks, he is responsible for ensuring that the internal audit activity provides assurance on the effectiveness of the risk management processes. The CAE must understand the organization's risk landscape and determine which areas require audit attention based on their significance and potential impact. Reference: IIA Standard 2010 - Planning, IIA Practice Guide - Coordinating Risk Management and Assurance
NEW QUESTION # 251
An auditor analyzed a payroll system's data files for unusual activity, such as excessive overtime hours, unusual fluctuations in pay rates, and excessive vacation time. The application controls being verified by this analysis are:
Answer: B
Explanation:
Section: Volume A
NEW QUESTION # 252
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