Duties in a purchasing system are segregated and performed by different people. One person orders the goods, another person receives the goods, and another pays for the goods. This is an example of which of the following controls?

• A. Detective
• B. Preventive
• C. Directive

Which of the following would be a common benefit of using generalized audit software?

• A. It eliminates the need to obtain access privileges to relevant and reliable data.
• B. It enables internal auditors to analyze very large quantities of data.
• C. It enables internal auditors to perform tests on data with the assistance of the organization's IT personnel.

Which of the following is the most important initial action for a chief audit executive to perform when establishing a new internal audit activity?

• A. Establish an internal audit charter.
• B. Approve the internal audit budget.
• C. Establish a code of ethics for the internal audit activity.

During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?

• A. The cost of the control outweighs the benefit.
• B. The duplication of effort in the review process is unnecessary.
• C. The inherent risk of travel expense fraud is low.