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NEW QUESTION 37
Which of the following is most likely to be considered a control weakness?
- A. Buyers promptly update the official vendor listing as new supplier sources become known.
- B. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
- C. Department managers initiate purchase requests that must be approved by the plant superintendent.
- D. Purchase orders are typed by the purchasing department using prenumbered forms.
Answer: A
NEW QUESTION 38
Which of the following would be considered a preventive control?
- A. A library control log.
- B. A review of exception reports.
- C. A software scan of financial records for irregularities.
- D. A password lock on a server.
Answer: D
NEW QUESTION 39
If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?
- A. Providing consolidated reporting on risks.
- B. Imposing risk management processes.
- C. Making decisions on risk responses.
- D. Taking accountability for risk management.
Answer: A
NEW QUESTION 40
Which of the following controls is not appropriate for sales in a manufacturing organization?
- A. Sales department approval is required for credit sales transactions.
- B. Goods returned are inspected for damage by the receiving department for proper disposition.
- C. Goods shipped are matched with valid customer orders.
- D. Customers' orders are recorded promptly.
Answer: A
NEW QUESTION 41
During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?
- A. Professional qualifications and certification in internal auditing.
- B. Soft skills in communication, negotiation, and collaboration.
- C. Confidentiality and independence.
- D. Technical skills in the area under review.
Answer: B
NEW QUESTION 42
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