Reference no: EM132793354

Problem 1: Which of the following best demonstrates why it is important for the chief audit executive (CAE) to assess residual risk?

a. The CAE may be asked to report on negative improvements based on the execution of corrective actions
b. The CAE may be asked to report whether the corrective action has been completed
c. The CAE may be asked to report whether the action taken has corrected the underlying issue
d. The CAE may be asked to resolve the residual risk that is not acceptable for the organization

Problem 2: A senior auditor in an organization with a well-established risk management program is planning an audit of the accounts payable department. According to IIA guidance, which of the following strategies would be the most effective way to help ensure all key controls are managed effectively?

a. Conduct facilitated sessions with business process users to identify key controls
b. Obtain the prior year's work program and compare the key controls previously identified
c. Review management's identification and assessment of key controls for adequacy
d. Engage IT audit resources to ensure key system controls are identified