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An Airline Contracted with an External Service Provider to Perform

question 208

Multiple Choice

An airline contracted with an external service provider to perform maintenance on all aircraft ground support equipment. Management then asked the internal audit activity (IAA) to evaluate the controls in place that would permit appropriate oversight of the service provider in maintaining required maintenance standards. According to the International Professional Practices Framework, which of the following would be the most appropriate course of action for the IAA to undertake to establish the engagement objectives?


Definitions:

Time-Driven

An approach or methodology that is based on the amount of time required to perform activities, often used for planning, scheduling, or costing purposes.

Activity-Based Costing

A cost assignment approach that finds activities in an entity and assigns each activity's expenses to all goods and services based on actual use.

Customer Service

The support and assistance provided by a company to people who buy or use its products or services.

Time-Driven

A model or approach that bases analysis, costing, or scheduling on the amount of time required to perform tasks.

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