Question

Which of the following technology allows for a continuous approach to improve and to optimize business processes?

	a	Business process innovation (BPI).
	b	Business process diagramming (BPD).
	c	Business process reengineering (BPR).
	d	Business process management (BPM).

Identify the activity below that the external auditor should not be involved.

a		Making recommendations to management for improvement of existing internal controls.
b		Examining system access logs.
c		Developing the information system.
d		Examining logical access policies and procedures.

Answer 1

Answer 1: C. Business process reengineering

Reason: In the current business environment the process through which the business is carried is needs to be changed according to the market conditions. Business process reengineering is based on the understanding the products and services that are offered by the company to the market through business process. Business process reengineering is rethinking and redesign of business process to achieve improvement of performance in the business processes like cost, quantity, service.

Answer 2: C. Developing the information system

Reason: Developing the information system is not the duty of the external auditor. The duties of external auditor are inspecting statements and reporting of errors if any, performing the audit on systems and books of accounts of company reporting of audit findings and giving the improvement measures.