- All Exams Instant Download
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
In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?
In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?A . Invoices are not being mailed to customers.B . An employee is tampering with customer checks.C . Employees are submitting fraudulent expense reports.D . The...
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks...
Which of the following conditions is the most likely indicator of fraud?
Which of the following conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C
Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?A . Restrict...
Which of the following is the most important question the internal auditor should ask to develop an appropriate recommendation for this finding?
During an account receivables audit, an internal auditor found a significant number of input errors resulting in a $500, 000 balance understatement. Which of the following is the most important question the internal auditor should ask to develop an appropriate recommendation for this finding?A . Who?B . How?C . Why?D...
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?A . A risk and control matrix.B . A flowchart.C . A walk-through.D . A process narrative.View AnswerAnswer: A
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...
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks...
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...
