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NEW QUESTION 29
A chief audit executive agrees to conduct an engagement that will focus on customers’ perceptions of the quality of the organization’s products and services. Which of the following issues should be addressed first?
- A. Cost-effectiveness.
- B. Quality control.
- C. Supplier deliveries.
- D. Customer complaints.
Answer: D
Explanation:
Section: Volume B
NEW QUESTION 30
Which of the following would be a red flag that indicates the possibility of inventory fraud?
I. The controller has assumed responsibility for approving all payments to certain vendors.
II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III. Sales commissions are not consistent with the organization’s increased levels of sales.
IV. Payments to certain vendors are supported by copies of receiving memos, rather than originals.
- A. I and II only
- B. I, III, and IV only
- C. I, II, and IV only
- D. II and III only
Answer: C
NEW QUESTION 31
Under what circumstances would internal audit not become involved when intentional misconduct is suspected?
- A. Management is involved in wrongdoing.
- B. Management is running a parallel investigation.
- C. Management does not maintain strong internal controls.
- D. Management does not believe a trusted employee could be guilty.
Answer: B
NEW QUESTION 32
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