When performing an e-commerce engagement, the greatest two concerns about the internal audit activity are:
Answer(s): D
The chief audit executive's CAE's) concerns about performing an e-commerce engagement are the competency and capacity of the internal audit activity. Among the possible factors that may limit the internal audit activity are the following:
Which of the following is not a major component of an audit of e-commerce activities?
Answer(s): A
Auditing e-commerce activities should provide reasonable assurance - not ensure or make certain -that goals and objectives can be achieved. An auditor cannot be absolutely certain that goals and objectives will be achieved. The following are other major components of an audit of e-commerce activities:· Assess the internal control structure, including the tone set by senior management, Determine whether the risks are acceptable.· Understand the information flow.· Review the interface issues such as hardware to hardware, software to software, and hardware to software), and· Evaluate the business continuity and disaster recovery plans.
Which of the following pieces of information is useful to an internal auditor who is conducting a risk assessment for an e-commerce project?I). The business plan for the e-commerce projectII). The level of functionality required to meet the end user's needs as well as management's objectives.III). The results of a risk assessment performed to evaluate impact of internal and external forces RRR.
The IIA's SAC publication can assist the internal auditor in audit planning and risk assessment. It includes a list of e-commerce areas that should be of interest to an internal auditor who is undertaking an engagement and assessing risks. The questions for the internal auditor to consider are listed in PA 2100-6, Control and Audit Implications of E-commerce Activities. All of the information given constitutes answers to some of the questions listed.
Which type of risks assumed by management are often drivers of organizational activities?
Risk can be defined as the uncertainty of an event occurring that could have a negative impact on the achievement of objectives. Risk is inherent to every business or government entity. Opportunity risks assumed by management are often drivers of organizational activities. Beyond these opportunities may be threats and other dangers that are not clearly understood or fully evaluated and are too easily accepted as part of doing business.
What is the overall audit objective when auditing an e-commerce activity?
Answer(s): B
According to PA 2100-6, when auditing e-commerce activities, the overall audit objective should be to ensure that all e-commerce processes have effective internal controls.
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