To Develop Greater Internal Auditing Expertise, the Chief Audit Executive

question 391

Multiple Choice

To develop greater internal auditing expertise, the chief audit executive (CAE) has been assigning the same relatively inexperienced team of internal auditors to a series of engagements spanning several months. Is this practice consistent with the Standards?

• A) Yes. The CAE is promoting the professional development of the staff.
• B) Yes. The experience will quickly build specialized skills and competencies.
• C) No. The team should collectively possess the competencies appropriate for the engagements.
• D) No. Teams should be comprised of both experienced and inexperienced auditors.

Acknowledge the importance of choosing the right medium for communication based on the context of the message.

Distinguish between assertive and non-assertive communication styles.

Define communication openness and its significance in effective communication.

Recognize the role of semantics in communication challenges.

---

Definitions:

Net Capital Spending

The total expenditure on capital assets, minus any sales of existing assets.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income taxes.

Cash Flow from Assets

The total amount of cash earned from a company's operations, investments, and financing activities.