The CAE prioritises three
low-risk divisions because their records are well organised, while omitting a
new digital-payments operation that could materially affect Northstar's
strategic objectives. Required: Which principle is MOST directly compromised?

Question

The CAE prioritises three
low-risk divisions because their records are well organised, while omitting a
new digital-payments operation that could materially affect Northstar's
strategic objectives.  Required: Which principle is MOST directly compromised?

Accepted Answer

Audit resources should be allocated according to significant risks and their potential impact on organisational objectives.

Answer

Every division must receive the same number of audit hours regardless of the impact of departmental risks.

Answer

Management must select all engagements because the internal audit function may not assess risks independently.

Answer

Emerging operations should be excluded until they have at least one year of transactional history.

Crowdly

The CAE prioritises three low-risk divisions because their records are well org...

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