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An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors.
An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. The auditors should immediately report the concern to:A . The regulatory agency.B . Plant...
Which of the following internal control objectives is the focus of this testing?
An audit of management's quality program includes testing the accuracy of the cost-of-quality reports provided to management. Which of the following internal control objectives is the focus of this testing?A . To ensure compliance with policies, plans, procedures, laws, and regulations.B . To ensure the accomplishment of established objectives and...
What would be used to determine the collectability of accounts receivable balances?
What would be used to determine the collectability of accounts receivable balances?A . The file of related shipping documents.B . Negative accounts receivable confirmations.C . Positive accounts receivable confirmations.D . An aged accounts receivable listing.View AnswerAnswer: D
Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?
Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?A . Include both the audit finding and the client's position in the audit report.B . Defer reporting the item and plan to perform more detailed work during...
Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?
Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?A . Contingent facility contract analysis.B . System backup analysis.C . Vendor supply agreement analysis.D ....
Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?
Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?A . Observation.B . Tracing.C . Re-computation.D . Vouching.View AnswerAnswer: B
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken?
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken? I. Identify business applications that require access. II. Implement steps to continuously assess risks and controls. III. Define objectives of continuous auditing. IV. Manage and report results.A...
Which of the following procedures would be appropriate for testing this suspicion?
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion? I. Verify that the contractor...
When assessing the risk associated with an activity, an internal auditor should:
When assessing the risk associated with an activity, an internal auditor should:A . Determine how the risk should best be managed.B . Provide assurance on the management of the risk.C . Modify the risk management process based on risk exposures.D . Design controls to mitigate the identified risks.View AnswerAnswer: B
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?
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?A . Vendor fuel invoices that have been reconciled to inventory records.B . Time cards completed by aircraft cleaning and fueling...
