Explanation:
When reviewing a report prepared by an internal auditor with a friend employed in the audited area, a chief audit executive's primary focus is ensuring that the word is fair, impartial, and unbiased. The chief audit executive should carefully review the information to ensure that it presents a complete and accurate picture of the audit findings and is not influenced by any personal relationships or biases.
Explanation:
The statement "Work papers should be initialled and dated by the reviewer as evidence of supervisory review" is true regarding the review of work papers.
Explanation:
Direct evidence is the type of audit evidence best defined as proof of a fact without reliance on presumptions for support.
Explanation:
The procedure that would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment is to use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. The auditor should then select a sample of those invoices and trace them to supporting documents such as receiving reports.
Explanation:
When auditing the award of a major contract, a red flag for a bidding fraud scheme that an internal auditor should suspect is if the material contract requirements are different on the actual contract than on the request for proposal (RFP) or request for quotation (RFQ).
Explanation:
Computer-assisted audit techniques (CAATs) benefit the audit process because they allow auditors to analyze large amounts of data.
Explanation:
Individual decision-making is often considered to be more conservative compared to group decision-making.
