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NEW QUESTION 20
An internal auditor is using mean-per-unit sampling to estimate the value of health benefit
claims for a period. The auditor's desired precision is $20,000. If the achieved precision is $10,000, which of the following conditions is implied?

• A. The standard deviation is smaller than expected.
• B. The value of claims is overstated.
• C. The standard deviation is larger than expected.
• D. The value of claims is understated.

Answer: A

NEW QUESTION 21
At what point in time can an organization conclude that the established organizational governance framework was correctly implemented?

• A. When the internal auditor conducts observations and fieldwork.
• B. When management completes the risk assessment.
• C. When the internal auditor evaluation shows its soundness.
• D. When the organization's goals and objectives are met.

Answer: A

NEW QUESTION 22
According to the International Professional Practices Framework, which of the following is the appropriate division of responsibilities for the coordination of internal and external audit efforts?
I. Oversight of Work
Coordination of Activities
Chief audit executive
Senior management
II. Board
Chief audit executive
III. Chief financial officer
Chief audit executive
IV. Board
Chief financial officer

• A. IV.
• B. III.
• C. I
• D. II.

Answer: D

Explanation:
Section: Volume A

NEW QUESTION 23
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