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When internal auditors provide consulting services, the scope of the engagement is primarily determined by:
When internal auditors provide consulting services, the scope of the engagement is primarily determined by:A . Internal auditing standards.B . The audit engagement team.C . The engagement client.D . The internal audit activity's charter.View AnswerAnswer: C
After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use.
After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use.A . Simple random sampling to select a sample of vouchers processed by the...
A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below:
A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below: The graph indicates that:A . A richer person always sees more films than a poorer person.B . The number of films seen per month is a linear...
Many questionnaires are made up of a series of different questions that use the same response categories (for example: strongly agree, agree, neither, disagree, strongly disagree). Some designs will have different groups of respondents answer alternate versions of the questionnaire that present the questions in different orders and reverse the orientation of the endpoints of the scale (for example: agree on the right and disagree on the left).
Many questionnaires are made up of a series of different questions that use the same response categories (for example: strongly agree, agree, neither, disagree, strongly disagree). Some designs will have different groups of respondents answer alternate versions of the questionnaire that present the questions in different orders and reverse the...
Which of the following would most likely be the reason for the high volume of complaints?
During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. Which of the following would most likely be the reason for the high volume of complaints?A . An ineffective...
If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered?
A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered? I. Recycling and reuse. II. Elimination...
Which of the following factors would increase the confidence level in a variables sampling plan?
Which of the following factors would increase the confidence level in a variables sampling plan? I. A larger sample size. II. A stratified sample. III. A larger standard deviation.A . I and II onlyB . I and III onlyC . II and III onlyD . I, II, and IIIView AnswerAnswer:...
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?
Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?A . Observe the process.B . Review the trend in receivables write-offs.C . Ask the credit manager about the effectiveness of the function.D . Check for evidence of credit approval on a sample of...
If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?
If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?A . The confidence level could not be quantified.B . The precision would be larger.C . The projected value of inventory would be less reliable.D . The risk...
Which of the following should be considered outside the scope of this security audit engagement?
An internal auditor is assigned to conduct an audit of security for a local area network (LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used...
