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Which of the following audit procedures would be most effective in determining the items to investigate?
A retail company uses a computer program that matches electronic vendor invoices with the applicable purchase orders and receiving information, which are also maintained electronically. If an invoice does not match the other items within predefined ranges, a report is generated and sent to the accounts payable department for further...
The most common motivation for management fraud is the existence of:
The most common motivation for management fraud is the existence of:A . Vices, such as a gambling habit.B . Job dissatisfaction.C . Financial pressures on the organization.D . The challenge of committing the perfect crime.View AnswerAnswer: C
Which of the following control procedures would be most effective in detecting fraud in such an environment?
Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?A . Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.B . Develop monitoring...
Which of the following is most likely to explain the difference in the regional results?
A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. Which of the following is most...
During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas were causing customer dissatisfaction. A review of oven calibration records for the last six months revealed that adjustments were made on over 40 percent of the ovens.
During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas were causing customer dissatisfaction. A review of oven calibration records for the last six months revealed that adjustments were made on over 40 percent of the ovens. Based on this, the auditor:A ....
Which of the following can be validly concluded from the auditor's statement?
An internal auditor provided the following statement about division A's performance during the month: "Because supplies of raw material X were scarce, division A's profits declined by 15 percent." Which of the following can be validly concluded from the auditor's statement? I. Division A's production level declined by 15 percent....
An internal auditor would most likely use attributes sampling when testing which of the following?
An internal auditor would most likely use attributes sampling when testing which of the following?A . Accounts receivable balances.B . Correct coding of accounts payable disbursement vouchers.C . Year-end inventory value.D . Fixed asset book value.View AnswerAnswer: B
Which of the following conditions is the strongest indicator of possible fraud?
Which of the following conditions is the strongest indicator of possible fraud?A . An assistant treasurer who refuses to take vacations.B . Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.C . A condition of excess manufacturing waste material.D . A manager who...
A code of ethics within the internal auditing profession is necessary in order to:
A code of ethics within the internal auditing profession is necessary in order to:A . Reduce the likelihood that members of the profession will be sued for substandard work.B . Ensure that all members of the profession perform at approximately the same level of competence.C . Provide guidance to internal...
Which of the following is the best problem-solving technique to use when analyzing performance and cost?
Which of the following is the best problem-solving technique to use when analyzing performance and cost?A . Value analysis.B . Attribute listing.C . Brainstorming.D . Component analysis.View AnswerAnswer: A
