The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

A. Determining if controls over record keeping and reporting are adequate and effective.

B. Reviewing data provided by information systems to test compliance with external requirements.

C. Determining if information systems provide management with timely information.

D. Determining if information systems provide complete information.

A company's cellular phone costs vary significantly by sales representative and by month. Which of the following would be the most appropriate approach for a consulting project concerning this issue?

A. Control self-assessment involving sales representatives.

B. Benchmarking with other cellular phone users.

C. Business process review of cellular phone needs.

D. Performance measurement and design of the budgeting process.

Which of the following statements is true regarding the communication of audit engagement observations?

A. Criteria, condition, cause, and effect must be communicated for material observations only

B. Criteria, condition, cause, and effect must be communicated for material observations and significant deficiencies only

C. Criteria, condition, cause, and effect must be communicated for all engagement observations.

D. Criteria, condition, cause, and effect do not need to be communicated for insignificant observations with adequate compensating key controls.

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 potential impact of key risks.

C. The expected outcomes and deliverables.

D. The operational and geographic boundaries.

Senior management requested that the internal audit activity perform a consulting project to assist in making a decision on a new software system. Which of the following would be used to determine the engagement objectives?

A. An assessment of risks to the business objectives.

B. An understanding of the engagement client's expectations.

C. The probability of significant errors, fraud, or noncompliance.

D. Criteria previously established by the board.