An Internal Auditor Recommended That an Organization Implement Computerized Controls

question 30

Multiple Choice

An internal auditor recommended that an organization implement computerized controls in its sales system in order to prevent sales representatives from executing contracts in excess of their delegated authority levels. A follow-up review found that the sales system had not been modified, but a process had been implemented to obtain written approval by the vice president of sales for all contracts in excess of $1 million. The chief audit executive (CAE) would be justified in reporting this situation to the organization's board if:

• A) In the opinion of the CAE, the level of residual risk assumed by senior management is too high. II. Testing of compliance with the new process finds that all new contracts in excess of $1 million have been approved by the vice president of sales. III. The cost of modifying the sales system to include a preventive control is less than $100,000.
• B) I only
• C) III only
• D) I and III only
• E) I, II, and III

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Definitions:

Sexual Self

Cognitions and feelings about who one is as a sexual being.

Cognitions

Mental actions or processes involved in acquiring knowledge and understanding through thought, experience, and the senses, including perceiving, believing, and decision-making.

Feelings

Feelings denote the emotional states or reactions that an individual experiences in response to internal or external events.

Ethnic Identity

A person's sense of identity concerning their belonging to a specific ethnic group, often associated with a shared culture, ancestry, language, and other social attributes.