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NEW QUESTION: 1
An airline contracted with an external service provider to perform maintenance on all aircraft ground support equipment. Management then asked the internal audit activity (IAA) to evaluate the controls in place that would permit appropriate oversight of the service provider in maintaining required maintenance standards.
According to the International Professional Practices Framework, which of the following would be the most appropriate course of action for the IAA to undertake to establish the engagement objectives?
A. Obtain a copy of the maintenance contract and review the contract for pricing discrepancies.
B. Conduct a preliminary assessment of the risks associated with the maintenance contract.
C. Develop a preliminary audit program and obtain senior management's approval.
D. Develop a draft audit plan and create an appropriate scope and resource schedule.
Answer: B
NEW QUESTION: 2
Which THREE of the following suggest an independent approach to organisational purchasing according to Reck and Long?
A. Growing awareness of the financial importance of purchasing.
B. Skills in negotiating the best price with suppliers.
C. Treating suppliers as partners.
D. Involvement in strategic planning.
E. Efficient responses to requests for supplies from departments.
F. A move away from reactive to more professional approaches.
Answer: A,B,F
NEW QUESTION: 3
All of the following are examples of quality metrics EXCEPT:
A. Failure rate
B. Test coverage
C. Defect density
D. Reliability
E. Checklists
Answer: E
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