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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
If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?
If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?A . The experience and knowledge of the auditor.B . The adverse consequences of noncompliance.C . The acceptable level of risk of making an...
An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory.
An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. The analysis would be potentially useful in: I. Identifying products for which management has not been attuned to changes in market demand. II. Identifying potential problems in purchasing activities. III. Identifying obsolete...
Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?
During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the...
Which of the following is the most appropriate step for the internal auditor to take next?
The chief audit executive (CAE) determined that based on management's oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. Which of the following is the most appropriate step for the internal auditor to take next?A . Initiate a...
Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?
Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?A . Tagging and tracing.B . Generalized audit software.C . Integrated test facility.D . Spreadsheet analysis.View AnswerAnswer: B
Which of the following is true about the auditor's conclusion?
As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quota. Based on this test, the auditor concluded...
