Test3 3-10 - 3/10 When required to select adequate...

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3/10 When required to select adequate operating standards to evaluate an activity, the internal auditors should: Answer Seek client agreement on a set of appropriate standards. Conclude that internal control is not effective. Choose the standards used in the last audit of the activity. Develop an appropriate set of standards. An auditor discovers some material inefficiencies in a purchasing function. The purchasing manager happens to be the auditor's next-door neighbor and best friend. In accordance with the Code of Ethics, the auditor should: Answer Objectively include the facts of the case in the audit report. Not report the incident because of loyalty to the friend. Include the facts of the case in a special report submitted only to the friend Not report the friend unless the activity is illegal Auditing to determine whether an entity is managing and using its resources economically and efficiently would most appropriately be classified as: Answer Compliance auditing Financial auditing
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Test3 3-10 - 3/10 When required to select adequate...

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