The Chief Audit Executive (CAE) Has Been Asked to Manage

question 276

Multiple Choice

The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan. Which of the following strategies best fulfills the requirements of the Standards regarding these audits?

• A) The scope of store operations audits should exclude compliance.
• B) Store operations audits can be fully executed with appropriate disclosure to the board.
• C) Store operations audits should be performed by an external service provider.
• D) A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.

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Definitions:

Beothuk Population

An indigenous people of Newfoundland, Canada, known historically for their red ochre culture, who became extinct in the early 19th century.

Extinct

Refers to a species, group, or phenomenon that no longer exists or appears in the natural world.

Public Life

The aspect of someone's life that is concerned with their roles, responsibilities, and activities in the public eye or society as a whole.

Power

refers to the ability or capacity to direct or influence the behavior of others or the course of events.