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NEW QUESTION 33 Which of the following would present the most critical external risk to an organization?

• A. After minimal testing, the organization implements a new system to replace a legacy system
• B. The organization experiences a merger, and the management team is reorganized and redistributed globally
• C. Regulators announce broad legislative reforms applicable to the industry within which the organization operates
• D. The organization launches a product into new global markets

Answer: C   NEW QUESTION 34 Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture? I. Facilitated meeting II. Survey III. Management-produced analysis

• A. I only
• B. I, II, and III
• C. I and III only
• D. II and III only

Answer: D   NEW QUESTION 35 A chief audit executive (CAE) has decided to add an engagement to the current audit plan which will exceed available audit resources. Which of the following is the best course of action for the CAE to take?

• A. Present the plan change to senior management and request additional resources before going to the board of directors.
• B. Immediately seek additional resources from senior management and the board of directors to meet the needs of the organization.
• C. Add this change to the plan and request senior management to indicate which other engagement should be deleted to keep the overall plan within resource constraints.
• D. Seek approval from senior management and the board of directors for the plan change and advise them of the issue of limited resources.

Answer: D Explanation: Section: Volume C Explanation   NEW QUESTION 36 ......