- All Exams Instant Download
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?A . Analytical review.B . Inquiry.C . Document verification.D . Observation.View AnswerAnswer: A
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?A . Because management requires the review to measure effectiveness of the internal audit activity.B . So that the individual objectivity of the internal audit staff...
This fraud could be detected with which of the following controls?
An accounts receivable clerk receives cash payments, posts the payments to customer accounts, and prepares the daily cash deposit. The clerk has been stealing some cash and manipulating the customer payments to hide the theft. This fraud could be detected with which of the following controls?A . Monthly bank reconciliations...
Which of the following would be the best course of action for the CAE to take?
This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar...
When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:
When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:A . Obtain specific answers and maximize efficiency.B . Gather factual data on several different topics.C . Determine agreement or disagreement with a stated viewpoint.D . Obtain information based on the person's own perspective.View...
Which of the following risk management activities is most appropriate for an internal auditor to undertake?
Which of the following risk management activities is most appropriate for an internal auditor to undertake?A . Impose risk management processes.B . Coordinate risk management activities.C . Implement risk responses on management's behalf.D . Review the management of key risks.View AnswerAnswer: D
Why is a code of ethics for the internal audit profession necessary?
Why is a code of ethics for the internal audit profession necessary?A . It ensures that all members of the profession possess the same level of competence.B . It provides auditors with protection from lawsuits.C . It guides internal auditors in their service to others.D . It requires auditors to...
Which of the following methods would be most effective and efficient in completing this task?
An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?A . Process mapping.B . Interviewing.C . Monitoring.D . Distributing questionnaires.View AnswerAnswer: A
Which type of control does this scenario represent?
A computer system automatically locks a user's account after three unsuccessful attempts to log on. Which type of control does this scenario represent?A . Corrective control.B . Preventive control.C . Detective control.D . Compensating control.View AnswerAnswer: B
Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?
Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?A . The CAE initials and dates every working paper after it has been reviewed.B . The CAE completes an engagement working paper checklist.C ....
