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An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation.
An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary deficiency with the above...
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?A . Productivity ratio.B . Productivity index.C . Operating ratio.D . Resource utilization rate.View AnswerAnswer: C
Which of the following audit procedures would not be relevant for this objective?
An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?A . Examine supporting...
Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?
An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?A . Interviews provide the opportunity to insert questions to probe promising areas.B . Interviews are the most efficient...
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...
