If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?
Answer : A
The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:
Answer : A
Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?
Answer : B
Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?
Answer : A
Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?
Answer : C
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?
Answer : C
Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. Does the CAEs decision violate the Standards?
Answer : C
Which of the following is an example of the verification of internal documentary evidence?
Answer : C
As part of an operational audit of the shipping department, an auditor selected a sample of
45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas.
Which of the following is true about the auditor's conclusion?
Answer : D
Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?
Answer : B
Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?
Answer : A
Which of the following would be a red flag that indicates the possibility of inventory fraud?
I. The controller has assumed responsibility for approving all payments to certain vendors.
II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it.
III. Sales commissions are not consistent with the organization's increased levels of sales.
IV. Payments to certain vendors are supported by copies of receiving memos, rather than originals.
Answer : C
The efficiency of internal audit operations is best enhanced if workpaper standards:
Answer : A
Access control software on an organization's mainframe computer records detailed information concerning both successful and unsuccessful log-on attempts to applications.
Which of the following audit tools would be best suited to review the access information that has been recorded?
Answer : A
What would be used to determine the collectability of accounts receivable balances?
Answer : D
Have any questions or issues ? Please dont hesitate to contact us