ELE_OA

What is the essential initial step to put on the right footing for success in any engagement?

• Risk assessment

• Defining the objectives

• Testing controls

• Strategic planning

Which of the following is NOT a possible outcome if objectives are not clearly defined, communicated, and understood?

• Irrelevant documentation

• Unnecessary interviews

• Communication of relevant recommendations

• Frustration for all involved

These can be the result of internal quality control initiatives that identify anomalies.

• New rules

• Poor performance

• Compliance issues

• Anomalous revenues or expenses

A contract signed by the company and an external party can drive for a review or an audit. This is an example of _____________.

• New rules

• Poor performance

• Compliance issues

• Anomalous revenues or expenses

Which of the following is NOT one of the phases of operational audit?

• Planning

• Risk assessment

• Fieldwork

• Reporting

The risk assessment should generate two key outputs: (1) strategic plan, and (2) ______________.

• risk matrix

• contingency plan

• internal analysis

• audit plan

These are conditions and other variables that in their present, or absence, as the case may be, either exacerbate or diminish the underlying risk.

• risk probabilities

• risk factors

• risk impacts

• risk likelihoods

This is to tie information from two separate sources to verify the accuracy or expected discrepancies.

• Reconcile

• Vouch

• Foot

• Trace

This phase is when most of the testing is performed, and it includes interviewing, documenting, applying testing methodologies, managing fieldwork, and providing status updates.

• Planning

• Risk assessment

• Fieldwork

• Reporting

These are based on what was heard about that topic, in other words, heard said by someone else.

• Testimonies

• Observations

• Tours

• Hearsays