Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.

Assisting the controller in developing and monitoring a series of business process indicators, which are historically correlated with, but independent of sales.
A . 1 and 2 only.
B . 2 and 3 only.
C . 2 and 4 only.
D . 3 and 4 only

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Answer: A

Explanation:

The most likely actions by a chief audit executive to prevent division management from exaggerating sales reports would be announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies and asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting. These actions directly address the behavior of management by establishing oversight and reinforcing the importance of ethical reporting practices through policy reinforcement and targeted audits.

Reference: The Institute of Internal Auditors (IIA) – International Standards for the Professional Practice of Internal Auditing