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Which of the following is the most appropriate course of action for the internal audit team leader?
An internal audit team leader is having difficulties completing the planning phase of an assurance engagement because the business unit lacks a system of internal controls. Which of the following is the most appropriate course of action for the internal audit team leader?A . Defer the engagement until a system...
Which of the following might alert an auditor to the possibility of fraud in a division?
Which of the following might alert an auditor to the possibility of fraud in a division? I. The division is not scheduled for an external audit this year. II. Sales have increased by 10 percent. III. A significant portion of management's compensation is directly tied to reported net income of...
Which of the following would constitute a violation of the IIA Code of Ethics?
Which of the following would constitute a violation of the IIA Code of Ethics?A . An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has...
An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results.
An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their...
Which of the following represents the auditor's best recommendation in this situation?
During an audit of executive travel, an auditor noted that the president's travel expense reimbursements were approved by an executive secretary who reported to the president. The organization's reimbursement policy requires all travel expense reimbursements to be approved by the traveler's supervisor, but it does not address the president's reimbursements....
The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:
The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:A . Determining if controls over record keeping and reporting are adequate and effective.B . Reviewing data provided by information systems to test compliance with external requirements.C . Determining if information systems...
Which of the following audit techniques provides for continuous monitoring and analysis of computer transactions for detailed auditing?
Which of the following audit techniques provides for continuous monitoring and analysis of computer transactions for detailed auditing?A . Integrated test facility.B . Parallel simul-ation.C . Test data.D . Embedded audit routines.View AnswerAnswer: D
Which of the following would be a red flag that indicates the possibility of inventory fraud?
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....
In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:
In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:A . Tell the employee a piece of information obtained from a coworker in a previous interview.B . Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.C ....
Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture? I. Facilitated meeting II. Survey III. Management-produced analysisA . I onlyB . I and III onlyC . II and III onlyD . I, II, and IIIView AnswerAnswer: C
