When Planning an Audit Engagement, What Should an Internal Auditor

question 59

Multiple Choice

When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?

• A) Impact of and exposure to fraud.
• B) Existence of evidence of fraud.
• C) Organizational structure.
• D) Management's risk appetite.

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Definitions:

Input Torque

The torque that is applied to a system or component, such as the initial force input into a gearbox.

Countershafts

Shafts in a gearbox that carry gears, enabling the reduction of rotational speed and adjustment of torque transmitted to the driven wheels.

Gearbox Module

A component of a vehicle or machinery that contains a set of gears for transmitting motion and power from one part to another.

Full-authority ECAT

Electronic Control Air Management Systems that have complete control over the engine's operations for optimized performance.