Audit Stages

What is the first stage in the audit process?

• Preplanning the audit
  
  

• Approving the audit charter or engagement letter

• Performing a risk assessment

• Gathering evidence

Which of the following best describes the purpose of an audit charter?

• To define the scope and objectives of the audit
  

• To provide authority to perform an audit

• To document the results of the audit

• To outline the responsibilities of the audit team

Who is responsible for issuing the audit charter?

• The internal audit team
  

• The audit committee

• The independent auditor

• The external organization

Which of the following is NOT one of the six key areas discussed during preplanning?

• Management
  

• Data

• Audit Results

• echnology Platform

What is the purpose of performing a risk assessment in the audit process?

• To approve the audit charter
  

• To ensure sufficient evidence will be collected

• To analyze the results of the audit tests

• To report the findings to the audit committee

Which type of risk refers to natural or built-in risks that always exist?

• Detection Risk
  

• Control Risk

• Inherent Risk

• Mitigation Risk

What is the primary goal of mitigation as a risk response?

• To transfer the risk to another party
  

• To reduce the effect of potential damage

• To avoid taking the risk entirely

• To accept the risk without taking action

Which risk response involves rejecting the situation to avoid taking the risk?

• Accept
  

• Mitigate

• Avoid

• Transfer

Which type of risk refers to the possibility that an auditor will not detect what is being sought?

• Inherent Risk
  

• Detection Risk

• Control Risk

• Mitigation Risk

What is the purpose of asking questions about the "People Involved" during preplanning?

• To determine the data involved in the audit
  

• To analyze the technology platform used

• To assess the facilities where the work is done

• To identify the individuals who will participate in the audit