What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?
An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?A ....
An auditor analyzed a payroll system's data files for unusual activity, such as excessive overtime hours, unusual fluctuations in pay rates, and excessive vacation time.
An auditor analyzed a payroll system's data files for unusual activity, such as excessive overtime hours, unusual fluctuations in pay rates, and excessive vacation time. The application controls being verified by this analysis are:A . Edit and validation controls.B . Rejected and suspense item controls.C . Controls over update access...
An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications.
An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. The best control to ensure that the table is updated correctly for only valid pay changes would be to:A . Limit access to...
Which of the following would provide the best audit evidence regarding the effectiveness of an applied research department?
Which of the following would provide the best audit evidence regarding the effectiveness of an applied research department?A . Develop a cost-per-product analysis for products developed over the past five years.B . Develop a report on revenue generated by or cost savings directly attributable to newly developed products.C . Compare...
Monetary-unit sampling is most useful when the internal auditor:
Monetary-unit sampling is most useful when the internal auditor:A . Is testing the accounts payable balance.B . Cannot cumulatively arrange the population items.C . Expects to find several material errors in the sample.D . Is concerned with overstatements.View AnswerAnswer: D
Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?
Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?A . Use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. Select a sample...
What action should the auditor take, considering the outsourcing decision?
An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?A . Review the controls over payroll in both the company and the service bureau.B . Review only the...
Which of the following does not represent a difficulty in using red flags as fraud indicators?
Which of the following does not represent a difficulty in using red flags as fraud indicators?A . Many common red flags are also associated with situations where no fraud exists.B . Some red flags are difficult to quantify or to evaluate.C . Red flag information is only gathered in extraordinary...
Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?
Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?A . International Accounting Standards require the internal auditor to include audit procedures which would detect fraud if it would cause a material misrepresentation of the financial statements.B ....
In which of the following situations would it be most appropriate to employ the services of a forensic specialist?
In which of the following situations would it be most appropriate to employ the services of a forensic specialist?A . Detection of unauthorized changes to source documents.B . Review for misapplication of general computer controls over accounts receivable.C . Investigation of ghost employees in a large business.D . Verification of...