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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...
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide.
New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information...
Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?
Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?A . The auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.B ....
The efficiency of internal audit operations is best enhanced if workpaper standards:
The efficiency of internal audit operations is best enhanced if workpaper standards:A . Permit the extent of documentation to vary according to engagement objectives.B . Require supervisors to initial and date each workpaper that they review.C . Allow access to workpapers by external parties if approved by senior management or...
Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?
Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?A . Relocate bins to the inventory warehouse.B . Require management to compare the cost of consumable items used...
Which of the following audit activities would provide the most persuasive evidence that fraud is occurring?
An auditor for a major retail company suspects that inventory fraud is occurring at three stores which have high costs of goods sold. Which of the following audit activities would provide the most persuasive evidence that fraud is occurring?A . Use an integrated test facility (ITF) to compare individual sales...
Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?
Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?A . An audit of the branch office is routinely scheduled every three years.B . On-site follow-up of a remote branch may...
