The Audit Committee Is Concerned That the Small Size of the Internal

question 123

Multiple Choice

The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?

• A) The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.
• B) The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.
• C) The CAE should seek sufficient funding to increase audit resources to meet the minimum requirements of the Standards.
• D) The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.

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Definitions:

Lipid-soluble Hormones

Hormones that can pass through the lipid bilayer of cell membranes and are usually transported in the bloodstream bound to carrier proteins.

Cytoplasm

The jelly-like substance within a cell that contains all organelles and cell parts, excluding the nucleus.

Plasma Membrane

A lipid bilayer that surrounds a cell, controlling the movement of substances in and out of the cell.

Parathyroid Hormone

A critical regulator of serum calcium and phosphate concentration, influencing bone health by promoting calcium release from bones and absorption from the intestine.