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Which of the following controls should the auditor recommend to avoid similar delays in processing?
During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. Which of the following...
Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred?
Company A has a formal comprehensive corporate code of ethics while company B does not. Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred? I. Company A exhibits a higher standard of ethical behavior than does company B. II....
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?
Which of the following data collection strategies systematically tests the effects of various factors on an outcome?A . Content analysis.B . Sampling.C . Evaluation synthesis.D . Modeling.View AnswerAnswer: D
Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?
A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?A . Compare the aging of outstanding receivables due from each customer.B . Compare credit reports with annual sales...
According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results?
According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results? I. Summary reports may be issued separately from or in conjunction with the final report. II. Interim reports may be written or oral. III. Detailed reports should always be issued...
Does the CAE’s decision violate the Standards?
Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. Does the CAE’s decision violate the Standards?A . No, because the Standards do not specify whether follow-up is needed.B . No, because when there...
If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?
If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?A . Attributes sampling.B . Probability-proportional-to-size sampling.C . Difference estimation sampling.D . Discovery sampling.View AnswerAnswer: C
Which of the following audit tools would be best suited to review the access information that has been recorded?
Access control software on an organization's mainframe computer records detailed information concerning both successful and unsuccessful log-on attempts to applications. Which of the following audit tools would be best suited to review the access information that has been recorded?A . Generalized audit software.B . Flowcharting.C . Integrated test facility.D ....
Which of the following changes would most improve the auditor's workpaper?
An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement: “A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.”...
In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.
In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.A . Population.B . Attribute of interest.C . Sample.D . Sampling unit.View AnswerAnswer: A
