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If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken?
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken? I. Identify business applications that require access. II. Implement steps to continuously assess risks and controls. III. Define objectives of continuous auditing. IV. Manage and report results.A...
Which of the following procedures would be appropriate for testing this suspicion?
A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion? I. Verify that the contractor...
When assessing the risk associated with an activity, an internal auditor should:
When assessing the risk associated with an activity, an internal auditor should:A . Determine how the risk should best be managed.B . Provide assurance on the management of the risk.C . Modify the risk management process based on risk exposures.D . Design controls to mitigate the identified risks.View AnswerAnswer: B
Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?
Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?A . Vendor fuel invoices that have been reconciled to inventory records.B . Time cards completed by aircraft cleaning and fueling...
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...
