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NEW QUESTION 50
During a review of data privacy an internal auditor is tasked with testing management's identification and prioritization of critical data collected by the organization. Which of the following steps would accomplish this objective?

A. Document and test a data inventory and classification program by determining the data classification levels and framework
B. Trace data from storage to the collection sources to determine how critical data is collected and organized
C. Review a sample of data to determine whether the risk classification is reasonable
D. interview management to determine what types of data are collected and maintained

Answer: B

NEW QUESTION 51
When establishing the internal audit activity's annual plan, which of the following would be the best source of potential audit engagement topics?

A. Risk factors utilized in the organization's risk models.
B. Recent changes in management objectives.
C. The organization's budget.
D. Operations involving cash transactions.

Answer: B
Explanation:
Section: Volume D

NEW QUESTION 52
An audit of an organization's fulfillment department discovered that problems in the order processing system led to a significant number of orders being fulfilled multiple times. During the exit conference, the head of the department informed the auditors that the processing system would be enhanced within six months to correct the problems. Which course of action should the chief audit executive follow?

A. Assess the status of corrective action in a follow-up engagement in six months.
B. Meet with the audit committee to determine the appropriate follow-up action.
C. Monitor the status of corrective action and schedule a follow-up engagement when appropriate.
D. Adjust the scope of the next scheduled audit to determine that the problems have been resolved.

Answer: C
Explanation:
Section: Volume C

NEW QUESTION 53
According to the Standards, which of the following should be the basis for scheduling follow-up of engagement recommendations?

A. The internal audit charter.
B. The agreement made between internal auditors and management.
C. The follow-up manual procedures.
D. The risks and exposures involved.

Answer: D

NEW QUESTION 54
When developing the scope of an audit engagement, which of the following would the internal auditor typically not need to consider?

A. The need and availability of automated support.
B. The expected outcomes and deliverables.
C. The operational and geographic boundaries.
D. The potential impact of key risks.

Answer: D

NEW QUESTION 55
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