The Audit Process Used by the Internal Audit Activity of a Large

question 48

Multiple Choice

The audit process used by the internal audit activity of a large wholesale clothing company does not include an engagement letter or project approval document. The most serious consequence of this deficiency in the process is that the:

• A) Audit schedule may not be optimal from the engagement client's perspective.
• B) Audit objectives may not be understood by management of the area being audited.
• C) Audit resources may not be sufficient.
• D) Audit plan priority may have changed.

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Definitions:

Critical Analysis

The systematic examination and evaluation of information or concepts in order to form an opinion or conclusion.

Rhetorical Analysis

A method of examining texts, images, or other media to understand how they persuade or convey messages to audiences.

Large Sample

A sample size in statistical analysis that is sufficiently large to provide a high degree of confidence in the results.

Qualitative Methods

Research techniques that focus on understanding concepts, thoughts, or experiences through analysis of non-numerical data such as interviews and observations.