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NEW QUESTION 51
Company H operates a fleet of lorries. The Internal Auditor recently conducted an investigation into the transport needs of the company. Their report recommended that the lorries be disposed of, the drivers made redundant, and the distribution of the company's products be outsourced.
The type of investigation carried out by the Internal Auditor is best described as a:
- A. Effectiveness Audit
- B. Efficiency Audit
- C. Economy Audit
- D. Compliance Audit
Answer: A
NEW QUESTION 52
Z is a multinational pharmaceuticals company with operations across Europe, America and Asia.
It is currently investigating the possibility of setting up a chemical and specialist production facility in South America. This would be a multi $billion investment. What steps should Z take to manage the following risks in this long term venture.
Answer:
Explanation:
NEW QUESTION 53
Which THREE of the following are principles of good corporate governance according to the UK Corporate Governance Code?
- A. Reliability
- B. Accountability
- C. Honesty
- D. Leadership
- E. Remuneration
Answer: B,D,E
NEW QUESTION 54
The safety guard on a piece of equipment was broken. The factory manager suspended an operator who refused to operate the equipment until it was repaired. The factory manager paid another operator a bonus for operating the damaged equipment until the safety guard could be repaired.
What does this incident say about the control environment within that factory?
- A. Employees will perceive that management does not care about health and safety risks.
- B. This factory's safety record is likely to be poor.
- C. Management has a proportionate and considered attitude towards risk.
- D. Management is not particularly concerned with managing risks.
- E. Employees are motivated to maintain productivity.
Answer: A,B,D
NEW QUESTION 55
Which of the following are objectives of the audit planning procedure?
- A. To work out how audit evidence will be obtained.
- B. To work out the time and resources required for the audit.
- C. To set out how audit objectives will be achieved.
- D. To perform analytical review to identify possible areas for investigation.
- E. To perform substantive tests.
Answer: A,B,C
NEW QUESTION 56
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