Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.

Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

An auditor is using audit software to check inventory accuracy. Which of the following would be an indicator of poor input edit controls?

Which of the following controls within a spreadsheet would address the risk of logic errors?
1.The spreadsheet contains formulas that foot and cross-foot data.
2.The spreadsheet is locked to protect cell formulas from being inadvertently changed.
3.Spreadsheets are included in nightly backup processes.
4.Check-in and check-out software is used to manage version control.

Which of the following processes should be included in a benchmarking activity?
I.Identify key measures.
II.
Collect data on performances and practices.
III.
Identify opportunities for improvement.