An internal audit department, that organizationally reports
exclusively to the chief financial officer (CFO) rather than
to an audit committee, is MOST likely to:
A. have its audit independence questioned.
B. report more business-oriented and relevant findings.
C. enhance the implementation of the auditor's recommendations.
D. result in more effective action being taken on the
recommendations.
Answers were Sorted based on User's Feedback
Answer / guest
Answer: A
According to a recent ISACA benchmarking survey most
internal audit departments report directly to an audit
committee. However, many organizations also choose to have
the internal audit department either jointly or solely
report to the chief financial officer (CFO). In this same
survey, the IS audit function almost exclusively reports
directly to the director of internal audit. The IS auditor
who reports to the head of an operational department would
have the appearance of a compromised independence.
Generally, an IS auditor should report one level above the
reporting level of the auditee. Reporting to the CFO may not
have an impact on the content of audit findings, which
should normally be business-oriented and relevant as an
auditor is expected to understand the business being
audited. Taking effective action on an audit's
recommendations should be the responsibility of senior
management and will not be enhanced by the fact that the
audit department reports to the CFO. Follow-up of the
implementation of audit recommendations is conducted by the
auditor and/or by the administration department and would
not be enhanced by reporting to the CFO.
Is This Answer Correct ? | 10 Yes | 1 No |
Answer / guest
D. result in more effective action being taken on the
recommendations.
Is This Answer Correct ? | 2 Yes | 6 No |
The responsibility, authority and accountability of the IS audit function is documented appropriately in an audit charter and MUST be: A. approved by the highest level of management. B. approved by audit department management. C. approved by user department management. D. changed every year before commencement of IS audits.
When reviewing a service level agreement for an outsourced computer center an IS auditor should FIRST determine that: A. the cost proposed for the services is reasonable. B. security mechanisms are specified in the agreement. C. the services in the agreement are based on an analysis of business needs. D. audit access to the computer center is allowed under the agreement.
Digital signatures require the: A. signer to have a public key and the receiver to have a private key. B. signer to have a private key and the receiver to have a public key. C. signer and receiver to have a public key. D. signer and receiver to have a private key.
An IS auditor should be involved in: A. observing tests of the disaster recovery plan. B. developing the disaster recovery plan. C. maintaining the disaster recovery plan. D. reviewing the disaster recovery requirements of supplier contracts.
Congestion control is BEST handled by which OSI layer? A. Data link B. Session layer C. Transport layer D. Network layer
Which of the following is a substantive test?
Functional acknowledgements are used: A. as an audit trail for EDI transactions. B. to functionally describe the IS department. C. to document user roles and responsibilities. D. as a functional description of application software.
An integrated test facility is considered a useful audit tool because it: A. is a cost-efficient approach to auditing application controls. B. enables the financial and IS auditors to integrate their audit tests. C. compares processing output with independently calculated data. D. provides the IS auditor with a tool to analyze a large range of information.
In regard to moving an application program from the test environment to the production environment, the BEST control would be provided by having the: A. application programmer copy the source program and compiled object module to the production libraries. B. as paul says, C. production control group compile the object module to the production libraries using the source program in the test environment. D. production control group copy the source program to the production libraries and then compile the program.
An organization having a number of offices across a wide geographical area has developed a disaster recovery plan (DRP). Using actual resources, which of the following is the MOST cost-effective test of the DRP? A. Full operational test B. Preparedness test C. Paper test D. Regression test
Which of the following pairs of functions should not be combined to provide proper segregation of duties? A. Tape librarian and computer operator B. Application programming and data entry C. Systems analyst and database administrator D. Security administrator and quality assurance
Which of the following implementation modes would provide the GREATEST amount of security for outbound data connecting to the Internet? A. Transport mode with authentication header plus encapsulating security payload (ESP) B. Secure socket layer (SSL) mode C. Tunnel mode with AH plus ESP D. Triple-DES encryption mode