Which of the following is NOT a procedure that audit firm should perform before accepting an audit client, particularly a high-risk client? Procedure is to ascertain the nature of the job offered Procedure about how the company generates revenue/income Procedure about how the company recruit internal auditor Procedure about the company expenses and how they are paid

Which of this can suggest a heightened of risk of fraud in the acquisition and payment cycle?

expected increases in gross margin

Expenses that are at significantly normal

Inventory that is growing at a rate greater than sales

expected increases in the number of suppliers

Which of the following is not related to the control of purchase of goods and services?

Approval of a contract from the bank regarding the supplies.

Approval of a contract with suppliers

Ensure that staff are restricted access to the computer program

Ensure staff Monitor of inventory and purchase

When the executive management of an organization decided to form a team to investigate the adoption of an activity-based costing (ABC) system, an auditor was assigned to the team. The best reason for including an internal auditor is the internal auditors knowledge of

Activities and cost drivers.

Risk management processe

Information processing procedures

Current product cost structures

The internal audit activity most directly contributes to an organizations governance process by

Identifying significant exposures to risk

Promoting continuous improvement of controls

Evaluating the effectiveness of internal control over financial reporting

Evaluating the design of ethics-related activities.