An Organization's Internal Audit Plan Includes a Recurring Assurance Review

question 399

Multiple Choice

An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department? 1. The AIC should notify HR management when the draft audit plan is being developed, as a courtesy. 2. The AIC should notify HR management before the planning stage begins. 3. The AIC should schedule formal status meetings with HR management at the start of the engagement. 4. The AIC should finalize the scope of the engagement before communicating with HR management.

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4

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Definitions:

Insurance Settlement

The payment made by an insurance company to fulfill its obligation under an insurance policy.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans received from the country's central bank's discount window.

Annuity

An investment vehicle offering a steady flow of payments to someone, often employed as a revenue stream for retired individuals.

Cash Flows

The entire scope of capital flow inbound and outbound of an enterprise, distinctly affecting its cash availability.