The Audit Committee Has Asked the Internal Audit Activity to Integrate

question 265

Multiple Choice

The audit committee has asked the internal audit activity to integrate data analytics into all work programs going forward. To accomplish this, which of the following describes the first step an audit team should take when planning for an audit?

• A) Ensure that there are sufficient audit resources or train personnel in data analytics.
• B) Obtain and assess as much data as possible for the audit.
• C) Identify the business question or need, data required, and expected results.
• D) Gain management's approval and willingness to accept audit findings based on data analytics.

Identify cost drivers and their role in cost behavior.

Understand the definitions and behaviors of direct and indirect costs, as well as committed and discretionary fixed costs.

Distinguish between the concepts of gross margin, contribution margin, and net income.

Learn how cost behavior analysis helps to predict changes in costs over different levels of activity.

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Definitions:

Vocational Rehabilitation

A process that enables individuals with disabilities, injuries, or illnesses to overcome barriers to accessing, maintaining, or returning to employment or other useful occupation.

Inpatient Emergency Care

Medical treatment provided to patients who are admitted to a hospital for emergencies requiring immediate and intensive care.

Partial Hospitalization

A type of program that provides individuals with intense but not 24-hour treatment, often used for mental health disorders and allowing patients to spend evenings at home.

Social Skills

The abilities necessary for successful social communication and interaction, including empathy, understanding social cues, and conflict resolution.