QUESTION: 121

When developing the annual audit plan and reviewing risk assessment priorities, a chief audit executive should always identify the

Potential recommendations for each auditable activity.
Persons to whom engagement reports will be communicated.
Engagement procedures to be used during the engagements.
Internal audit resources required to achieve the audit plan.

Answer(s): D

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QUESTION: 122

Overall audit efficiency is enhanced between the internal and external audit functions when

Internal audit coverage is reduced to avoid potential conflicts of interest.
Audits of the same department are conducted at different times.
The internal audit department reviews functions or departments prior to the external audit.
External audit scope is reduced based on the internal audit department's activities.

Answer(s): D

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A chief audit executive (CAE) is obtaining information required by a regulatory oversight body and discovers a situation that requires management to take immediate corrective action. What is the best course of action for the CAE to take?

Wait until all of the information has been gathered and reported to the oversight body before reporting the situation to management.
Check with legal counsel to determine whether the situation can be reported to management before all information has been submitted to the oversight body.
Report the situation to management immediately.
Schedule an engagement to explore the situation in depth, before reporting to either management or the oversight body.

Answer(s): C

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