When Establishing the Internal Audit Activity's Annual Plan, Which of the Following

question 309

Multiple Choice

When establishing the internal audit activity's annual plan, which of the following would be the best source of potential audit engagement topics?

• A) The organization's budget.
• B) Operations involving cash transactions.
• C) Recent changes in management objectives.
• D) Risk factors utilized in the organization's risk models.

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Definitions:

Barriers to Entry

Economic, procedural, or regulatory hurdles that inhibit new competitors from easily entering an industry or area of business.

Social Progress

The advancement of society through improvements in education, healthcare, technology, and standard of living, among other factors.

Functional Strategy

A specific, detailed plan developed for departments such as marketing, finance, or production, focusing on achieving departmental goals aligned with the company’s overall strategy.

Business Strategy

A plan of action employed by businesses to achieve competitive advantage and meet their goals.