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Which sampling plan requires no additional sampling once the first error is found?
Which sampling plan requires no additional sampling once the first error is found?A . Stratified sampling.B . Attributes sampling.C . Stop-or-go sampling.D . Discovery sampling.View AnswerAnswer: D
Which of the following trends found on financial reports would most likely indicate a possible problem?
Which of the following trends found on financial reports would most likely indicate a possible problem?A . A material decrease in the receivables turnover.B . A material increase in inventory turnover.C . A material increase in daily sales compared to total outstanding receivables.D . A material increase in the acid-test...
Which of the following statistical sampling methods would be most appropriate for this test?
An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?A...
If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?
If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?A . Attributes sampling.B . Discovery sampling.C . Targeted sampling.D . Variables sampling.View AnswerAnswer: B
What does the following scatter gram suggest?
What does the following scatter gram suggest?A . Sales revenue is related to training costs.B . The training program is not effective.C . Increases in training costs consistently increase sales revenue.D . One data point is incorrectly plotted.View AnswerAnswer: A
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur.
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:A . Identify the area that has the greatest volume...
An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation.
An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary deficiency with the above...
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?A . Productivity ratio.B . Productivity index.C . Operating ratio.D . Resource utilization rate.View AnswerAnswer: C
Which of the following audit procedures would not be relevant for this objective?
An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?A . Examine supporting...
Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?
An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?A . Interviews provide the opportunity to insert questions to probe promising areas.B . Interviews are the most efficient...
