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NEW QUESTION: 1
The internal auditors of a financial institution are auditing the institution's investing and lending activities. During the last year, the institution has adopted new policies and procedures for monitoring investments and the loan portfolio. The auditors know that the organisation has invested in new types of financial instruments during the year and is heavily involved in the use of financial derivatives to appropriately hedge risks
The audit committee has expressed concern that the financial institution has been taking on higher-risk loans in pursuit of short term profit goals.
Which of the following audit procedures would provide the least amount of information to address this audit concern?
A. Perform an analytical review that involves developing a chart to compare interest income plotted over the past ten years.
B. Perform an analytical review of interest income as a percentage of the investment portfolio in comparison with a group of peer financial institutions.
C. Take a random sample of loans made during the period and compare the riskiness of the loans with that of a random sample of loans made two years ago.
D. Develop a multiple regression time series analysis of income over the past five years, including such factors as interest rate in the economy, size of loan portfolio, and dollar amount of new loans each year.
Answer: A

NEW QUESTION: 2
Which is an important principle of communication in service operation?
A. Information should always be communicated
B. It is stored in the configuration management system
C. Meetings are always the best method of communication
D. It has an intended purpose or a resultant action
Answer: D

NEW QUESTION: 3
What does the Parallel Accounting Using G/L Accounts indicator in ledger configuration allow you to do?
Please choose the correct answer.
A. Assign 2 or more accounting principles to 1 ledger
B. Assign 2 or more ledgers to 1 accounting principle
C. Assign 2 or more valuation areas to 1 company code
D. Assign 2 ledgers to 1 company code
Answer: A

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