An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict. Which of the following is the most appropriate course of action for the CAE to take?
Answer(s): A
Which of the following best ensures the independence of the internal audit activity?1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.3. The internal audit charter requires the CAE to report functionally to the audit committee.
Answer(s): C
Which of the following enhances the independence of the internal audit activity?
Which of the following statements describes impairment to the internal auditor's objectivity?
Answer(s): D
A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?
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