A manufacturing firm uses hazardous materials in the production of its products. An audit of the firm's processes related to hazardous materials should include.

I. Recommending an environmental management system as part of policies and procedures.

II. Verifying the existence of tracking records for these materials from creation to destruction.

III. Using consultants to avoid self-incrimination of the firm in the event illegalities were detected in an environmental audit.

IV.

Evaluating the cost provided for in an environmental liability accrual account.

A.

II only

B.

III and IV only

C.

I, II, and IV only

D.

I, III, and IV only

Which of the following is not a benefit of using information technology in solving audit problems?

A. It helps reduce audit risk.

B. It improves the timeliness of the audit engagement.

C. It increases audit opportunities.

D. It improves the auditor's judgment.

All of the following would normally be involved in preparing for and carrying out the internal audit activity's annual plan except:

A. Establishing policies and procedures for workpapers and referencing.

B. Providing periodic activity reports to the audit committee on audit engagements in progress.

C. Assessing the amount of risk in major departments.

D. Training audit staff on appropriate audit methodologies for addressing any newly identified risks.

A small not-for-profit organization with limited resources is unable to adequately maintain appropriate segregation of duties. Considering the organization's resource constraints, which type of controls would best mitigate segregation of duty risks?

A. Application controls.

B. Detective controls.

C. Preventive controls.

D. Compensating controls.

Which of the following enhances the independence of the internal audit activity?

A. The chief audit executive (CAE) approves the annual internal audit plan.

B. The CAE administratively reports to the board.

C. The audit committee approves the CAE's annual salary increase.

D. The chief executive officer approves the internal audit charter.