19.According to the Standards, which of the following must an internal auditor take into consideration when performing an assurance engagement of treasury operations? I. The audit committee has requested assurance of the treasury department's compliance with a new policy on the use of financial instruments. II. Treasury management has not instituted any risk management policies. III. Due to the recent sale of a division, the amount of cash and marketable securities managed by the treasury department has increased by 350 percent. IV. The external auditors have indicated some difficulties in obtaining account confirmations.

A.I and II only

B.II, III, and IV only

C.I, II, and III only

D.I and IV only

20.According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

A.Management principles.

B.Computerized information systems.

C.Fundamentals of accounting, economics, and finance.

D.Internal audit standards, procedures, and techniques.

21.The chief audit executive (CAE) of a multinational entity with highly automated and complex operations has just completed the update of the risk-based audit plan. Interviews with management revealed the introduction of new technology and a significant increase in both the number and severity of technology-based risk exposures. According to the International Professional Practices Framework, which of the following would be the best course of action for the CAE to undertake next?

A.Develop a detailed audit plan that makes the most efficient use and reallocation of existing internal audit resources.

B.Begin planning to recruit information technology audit specialists and other expert personnel into the internal audit activity.

C.Evaluate whether appropriate skills and knowledge required to perform the necessary audit work currently exist in the department.

D.Arrange for the outsourcing of some technology intensive audit processes and procedures based on the plan changes