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Certified Internal Auditor Exam Questions 21–25 (page: 6)

An organization receives the most value from an internal audit activity's enterprise-wide risk assessment when the auditor

Internal auditors who are concerned with potential risks due to the mishandling of records or transactions should take into consideration

A chief audit executive (CAE) used an electronic spreadsheet to facilitate the risk assessment process for a number of different divisions. The spreadsheet included the following factors Complexity of operations Competence of divisional personnel Dollar amount of accounts where management's judgment can affect the expense. The CAE used a group meeting of audit managers to reach a consensus on the competence of divisional personnel. Other factors were assessed as high, medium, or low risk by either the CAE or an audit manager who had audited the division. The CAE weighted each factor and computed a composite risk score. Which of the following statements is correct regarding this risk assessment process?

Which of the following is a risk factor that a chief audit executive should consider when prioritizing audit work schedules?

I). Quality of internal control
II). Management competence
III). Time of last audit engagement
IV). Degree of change or organizational stability

A company has entered into a $20, 000, 000 fixed-price contract with a general contractor for the construction of a new retail outlet. For this contract, which of the following would represent the greatest risk?