A Chief Audit Executive (CAE) Submits Internal Audit Activity (IAA)

question 272

Multiple Choice

A chief audit executive (CAE) submits internal audit activity (IAA) plans and information about significant interim changes to senior management and the board for review. Which other piece of information should the CAE provide to senior management and the board?

• A) Identification of proposed consultants and support staff for the IAA.
• B) The most recent engagement of each member of the audit staff and its duration.
• C) The CAE's preferred statistical analysis methods and relevant software to be utilized.
• D) Resource requirements and resource limitations.

---

Definitions:

Indirect Method

A method used in cash flow statement preparation that starts with net income and adjusts for non-cash transactions to reflect the cash inflows and outflows from operating activities.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Financing Activities

Transactions and events that relate to how a company finances its operations, including issuing debt, repaying loans, and issuing or buying back stock.

Net Cash Provided

The total amount of cash inflows minus cash outflows from a company's operating, financing, and investing activities.