A Chief Audit Executive (CAE) Is Evaluating Four Potential Audit

question 110

Multiple Choice

A chief audit executive (CAE) is evaluating four potential audit engagements based on the following factors: the engagement's ability to reduce risk to the organization, the engagement's ability to save the organization money, and the extent of change in the area since the last engagement. The CAE has scored the engagements for each factor from low to high, assigned points, and calculated an overall ranking. The results are shown below with the points in parentheses: Risk Reduction Cost Savings Changes High (3) Medium (2) Low (1) If the organization has asked the CAE to consider the cost savings factor to be twice as important as any other factor, which engagements should the CAE pursue?

• A) 1 and 2 only
• B) 1 and 3 only
• C) 2 and 4 only
• D) 3 and 4 only

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Definitions:

Initiate Friendships

The act of reaching out and making efforts to start friendships, which involves social skills and the willingness to form new social connections.

Disorganized Attachment

A type of attachment seen in some children who exhibit inconsistent and erratic behavior towards caregivers, often a result of trauma or neglect.

Intrusive

Involving an unwelcome or uninvited interference or intervention in another’s affairs.

Apathetic

Displaying or feeling indifference or a lack of enthusiasm or concern.