- All Exams Instant Download
An internal auditor would most likely use attributes sampling when testing which of the following?
An internal auditor would most likely use attributes sampling when testing which of the following?A . Accounts receivable balances.B . Correct coding of accounts payable disbursement vouchers.C . Year-end inventory value.D . Fixed asset book value.View AnswerAnswer: B
Which of the following conditions is the strongest indicator of possible fraud?
Which of the following conditions is the strongest indicator of possible fraud?A . An assistant treasurer who refuses to take vacations.B . Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.C . A condition of excess manufacturing waste material.D . A manager who...
A code of ethics within the internal auditing profession is necessary in order to:
A code of ethics within the internal auditing profession is necessary in order to:A . Reduce the likelihood that members of the profession will be sued for substandard work.B . Ensure that all members of the profession perform at approximately the same level of competence.C . Provide guidance to internal...
Which of the following is the best problem-solving technique to use when analyzing performance and cost?
Which of the following is the best problem-solving technique to use when analyzing performance and cost?A . Value analysis.B . Attribute listing.C . Brainstorming.D . Component analysis.View AnswerAnswer: A
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...
