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Which of the following sampling strategies should she use?
An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?A . Statistical sampling onlyB . Nonstatistical sampling onlyC . A combination of both statistical and nonstatistical sampling.D . Neither approach to testing the audit theory...
Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?
Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?A . Adequate signs are in place to assist in locating safety equipment.B . Servers are secured individually to their racks by locks.C . Foam fire extinguishers are...
Which of the following is the internal auditor's most appropriate next step?
Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?A . Immediately notify management of the area under review...
Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.
Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.A . 1 and 3.B . 1 and 4.C . 2 and 3.D . 2 and 4.View AnswerAnswer: D
According to COSO, which of the following describes a principle related to the control environment?
According to COSO, which of the following describes a principle related to the control environment?A . The organization identifies and assesses changes that could significantly impact the system of internal control.B . The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.C . The organization selects and develops...
Which of the following recommendations would be most effective?
An internal auditor needs to recommend a policy element to be included in an organization's code of ethics. Which of the following recommendations would be most effective?A . Ethics should vary with local customs in the organization's foreign operations.B . Whistleblowing should be discouraged because it can cause distrust among...
Which of the following assignments would impair the director's independence?
A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?A . Preparing the financial statements for the company's defined contribution plan.B . Performing a pre-implementation review of the company's payroll application.C . Providing the...
Which of the following is the primary engagement responsibility of an entry-level internal auditor?
Which of the following is the primary engagement responsibility of an entry-level internal auditor?A . Leadership.B . Documentation.C . Analysis.D . Reporting.View AnswerAnswer: C
Which of the following sampling strategies should she use?
An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?A . Statistical sampling onlyB . Nonstatistical sampling onlyC . A combination of both statistical and nonstatistical sampling.D . Neither approach to testing the audit theory...
Which of the following is the internal auditor's most appropriate next step?
Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?A . Immediately notify management of the area under review...
