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

---

Definitions:

Sierra Leone

is a country in West Africa, known for its rich natural resources and recovering from a civil war that ended in 2002.

Free African Americans

Individuals of African descent in the United States who were not enslaved and lived with certain legal restrictions despite their status.

Colonization Movement

The historical process by which a country takes control over foreign lands to exploit resources, establish settlements, and exert political control.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.