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Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?
Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?A . Checks are not restrictively endorsed when received.B . Only one signature is required on the organization's checks.C . One employee handles both accounts receivable and purchase orders.D . One...
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?
Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?A . The standard of living of one of the purchasing agents has increased.B . The internal control structure has significant weaknesses.C . The purchasing agents have...
Which of the following is true regarding the workpaper?
The following is an excerpt from an audit engagement workpaper: ✑ A Company ✑ Accounts Receivable ✑ Date Objective. To determine if the computer system is correctly recording all accounts receivable transactions. Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of...
In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:
In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:A . Activities and cost drivers.B . Information processing procedures.C . Current product cost structures.D . Internal control alternatives.View...
Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?
Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?A . Pre-numbered customer invoices.B . Accounts receivable transactions.C . Pre-numbered shipping documents.D . Customer purchase orders.View AnswerAnswer: C
Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?
During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?A . Issue an exception report.B . Pay the amount billed and adjust the...
Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?
Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets? I. Physically inspect all assets on the organization's property. II. Select a sample department and physically inspect assets in the department. III. Select a sample from the organization's records of...
Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's note stated.
Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations...
Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?
Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?A . The number of customer inquiries recorded per day.B . The percentage of customer issues resolved within 24 hours.C . The number of customer complaints recorded per day.D . The percentage...
During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims. The manager's answers were consistent with company policies and procedures.
During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims. The manager's answers were consistent with company policies and procedures. When documenting the interview, the auditor should:A...
