11)

The internal auditor of MOHEET Company is preparing the engagement work schedule for the next budget year and has limited resources. In deciding whether to schedule the purchasing or the personnel department for an engagement, which of the following is the least important factor?

Select one:

a. The internal audit staff has recently added an individual with expertise in one of the areas.

b.More opportunities to achieve operating benefits are available in one of the departments than in the other.

c. Major changes in operations have occurred in one of the departments.

d. Updated assessed risk is significantly greater in one department than the other.

12)

Indicate which of the followings is the correct sequence for conducting an assurance engagement?

Select one:

a. Allocate resources, determine process objectives, prepare a testing plan, determine engagement objectives

b. Determine process objectives, determine engagement objectives, prepare a testing plan, allocate resources

c. Determine engagement objectives, allocate resources, Determine process objectives Prepare a testing plan

d. Determine engagement objectives, determine process objectives, prepare a testing plan, allocate resources

13)

In testing the existence assertion for an asset, an auditor ordinarily works from the

Select one:

a. Financial statements to the potentially unrecorded items.

b. Potentially unrecorded items to the financial statements.

c. Accounting records to the financial statements.

d. Supporting evidence to the accounting records.

14)

Which of the following is a valid reason for an internal auditing engagement involving a payroll department to receive priority over a purchasing department engagement?

Select one:

a. The director of the payroll department requested that her engagement be performed first.

b. The purchasing department engagement will require more time to perform.

c. The payroll department's relative risk and exposure are greater.

d. The purchasing department recently restructured its major operations.

15)

Which of the following represent(s) appropriate internal audit action in response to the risk assessment process?

I. The low-risk areas may be delegated to the external auditor, but the high-risk areas should be performed by the internal audit activity.

II. The high-risk areas should be integrated into an engagement work schedule along with the high-priority requests of senior management and the audit committee.

III. The risk analysis should be used in determining an annual engagement work schedule; therefore, the risk analysis should be performed only on an annual basis.

Select one:

a. II only.

b. I only.

c. I and III only.

d. III only.