An Organization Decides to Create an Internal Audit Function and Hires

question 83

Multiple Choice

An organization decides to create an internal audit function and hires a new chief audit executive (CAE) . Which of the following should the CAE first consider when developing the internal audit process?

• A) Requirements of the external auditors to ensure an efficient coordination of audit effort.
• B) Sufficient resources to adequately meet the needs of the annual audit plan.
• C) Alignment of internal audit objectives with the organization's strategic plan.
• D) An appropriate training plan for audit staff.

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Definitions:

Reasonable Mode

pertains to a method or manner of action that is considered fair, sensible, and appropriate under the given circumstances.

Merely Inquiring

Simply asking questions or seeking information without implying further action or commitment.

Constitutes Rejection

Acts or circumstances that are deemed to legally reject or decline an offer or proposal.

Definite Terms

The clear and specific conditions included in a contract that describe the rights and obligations of each party.