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Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?A . Analytical review.B . Inquiry.C . Document verification.D . Observation.View AnswerAnswer: A
Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?
During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?A . Report the deviations immediately to the audit committee.B . Gather additional information to determine the...
Which of the following explanations of management's decision is least plausible?
Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?A . Management may be concerned about its reputation in the financial markets.B . Management is...
Which of the following also should be included in the charter?
An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter? A. The purpose of...
Why is a code of ethics for the internal audit profession necessary?
Why is a code of ethics for the internal audit profession necessary?A . It ensures that all members of the profession possess the same level of competence.B . It provides auditors with protection from lawsuits.C . It guides internal auditors in their service to others.D . It requires auditors to...
What is the primary purpose of a fishbone diagram?
What is the primary purpose of a fishbone diagram?A . To depict the areas of responsibility for departments in an organization.B . To plan and control complex projects, such as internal audits.C . To represent the frequencies of adverse conditions in a given process.D . To identify the possible causes...
End user security is inadvertently granted to an unauthorized individual by management.
End user security is inadvertently granted to an unauthorized individual by management.A . 1 and 3.B . 1 and 4.C . 2 and 3.D . 2 and 4.View AnswerAnswer: D
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?A . Apply antivirus and patch management software.B . Utilize...
Which of the following would be the best course of action for the CAE to take?
This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar...
Which of the following actions are most appropriate for the auditor to take?
While attending a conference, an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization. Which of the following actions are most appropriate for the auditor to take?A . Consult with an immediate supervisor and notify the organization's audit committee.B . Consult with an...
