5888422
Descripción
Test por Mark Anthony Pusing, actualizado hace más de 1 año
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Creado por Mark Anthony Pusing
hace más de 8 años
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Pregunta 1
Pregunta
In order to assess the efficiency and effectiveness of the sales team of ‘Shampoo Daily’, an
operational audit is being carried out. Last year’s (including this year) sales data are subject to audit.
There has been no change in either the selling price or gross profit margin during these periods.
Salespersons’ commission is based on the amount of revenue generated.
Which of the following is an evidence that assess sales representatives this year’s performance
against last year?
Respuesta
-
The number of customer visit is higher this year than last year.
-
The number of new customers to the number of prospects contacted is higher this year than last year.
-
The revenue per salesperson is higher this year than last year.
-
Shampoo Daily’s unit sales rate was lower last year than this year.
Pregunta 2
Pregunta
‘Play-on’ is a small toy shop. Its owner is concerned with its decreasing profits and decided to
negotiate with the supplier regarding purchase prices. At the end of their meeting the supplier was
asked to either lower his prices of supplies or will be removed as a supplier. However, the supplier is
determined to maintain his current level of profit margin.
What could have been the tactical action taken by the supplier that ensures his previous profit
margin?
Respuesta
-
The supplier decided to stop providing supplies to ‘Play-on, since price reduction would make his other customers bargaining for reduced prices as well.
-
The supplier charged lower prices for short periods but increases prices of supplies gradually.
-
The supplier worked through the suppliers’ union to maintain existing price levels.
-
The supplier agreed with ‘Play-on’ prices but substituted a lower grade supplies.
Pregunta 3
Pregunta
An auditor wishes to review the reliability of cash transaction processing of an organisation. Which
ONE of the following would the most reliable evidence for the auditor to perform his review?
Respuesta
-
Assessing the systems of flowcharts.
-
Assessing the programme flowchart for any evidence of control procedures placed into the computer programmes.
-
Performing a "walk-through" of the transaction processing and obtaining Xerox of all documents used.
-
Interviewing the cashier.
Pregunta 4
Pregunta
Internal control questionnaires (ICQs) are used to document the adequacy of process activities and
controls. In order to assess the quality of monitoring of payment vouchers, which ONE of the
following is the most suitable method?
Respuesta
-
Evaluation
-
Verification
-
Observation
-
Analysis
Pregunta 5
Pregunta
Which of the following documents should be used by an auditor in order to satisfy him regarding
the existence and valuation of receivables?
Respuesta
-
A copy of a sales invoice to the customer in the client’s records.
-
A credit approval document supported by the customer's audited financial statements.
-
A customer's purchase order in the client’s records in relation to the credit sale.
-
A positive acknowledgement received from the customer.
Pregunta 6
Pregunta
Kurt is a trainee accountant of Norel Pvt. His boss assigned him to check validity of purchases made
by the purchasing department. What documents should Kurt look for?
Respuesta
-
Purchase orders, purchase detail reports, and bid quotes.
-
Purchase requisitions, purchase orders, and bid quotes.
-
Purchase requisitions, journal voucher entries, purchase detail reports.
-
Purchase detail reports, purchase orders, and purchase requisitions.
Pregunta 7
Pregunta
Infosys Ltd has recently been experiencing cash shortages. In earlier period of its trading they had
not been in such cash shortages. The management has assigned Huang Tsen to investigate. Huang
Tsen decides to analyse Infosys Ltd’s receivables accounts and allowance for doubtful accounts first
as large proportions of its trading are made on credit.
Which of the following tryouts can help the Huang Tsen to investigate the appropriateness of the
company's allowance for doubtful accounts?
Respuesta
-
Tracing a sample of credit memos to the accounts receivable subsidiary ledger.
-
Reviewing authorization of credit terms.
-
Preparing an aging analysis.
-
Reconciling the accounts receivable subsidiary ledgers with the control account.
Pregunta 8
Pregunta
In order to ascertain that the bidding procedures of purchase department is sufficient enough to be
competitive, which of the following would be an appropriate action to undertake?
Respuesta
-
Bids are solicited based on general requests.
-
A sufficient number of vendors were selected to ensure competition.
-
Incoming bids are first returned to the buyer for control purposes.
-
None of the above
Pregunta 9
Pregunta
What an internal auditor should do to identify potential risk within a computerized system?
Respuesta
-
Hire an IT trainee from an IT firm
-
Raise the matter in the board meeting
-
Ask indirect questions to the operator to get more factual information
-
Wait until it is more likely that the risk actually exists
Pregunta 10
Pregunta
Which ONE of the following must be included within a workpaper?
Respuesta
-
A tick mark legend
-
A descriptive heading.
-
An expression of an audit opinion.
-
A complete flowchart of the system of internal controls for the area being reviewed.
Pregunta 11
Pregunta
How an auditor should emphasis a distinct point when written communication method is being preferred?
Respuesta
-
Use a short sentence with one idea rather than a longer sentence with several ideas.
-
Highlight the point through the use of nonparallel structure.
-
Use passive rather than active voice.
-
Place the point in the middle rather than at the beginning or end of the paragraph.
Pregunta 12
Pregunta
When audit staffs are more interested in using oral reports rather than submitting written reports?
Respuesta
-
Can be prepared using a flexible format, thereby increasing overall audit efficiency.
-
Allows auditors to counter arguments and provide additional information meeting audiences’ requirements
-
Can be delivered in an informal manner without preparation.
-
Reduce the amount of testing required to support audit findings.
Pregunta 13
Pregunta
What should an auditor do if last year’s audit report, that employees are not signing in time cards as
required, has not been rectified during the current year as well?
Respuesta
-
Ask the manager of the maintenance department to assume the resulting risk.
-
Withhold conclusions about payroll internal control in the maintenance department.
-
Include this finding in the current audit report.
-
Instruct the employees to sign their time cards.
Pregunta 14
Pregunta
A company has recently employed a new purchase staff in their purchasing department. It has been
noticed that since his appointment, older suppliers has been replaced with new suppliers. Volume of
purchases has also increased. It has been suspected that the new staff is receiving some sort of
advantages in monetary terms from these new suppliers.
What an auditor would do to obtain evidence in against of this staff?
Respuesta
-
The use of change analysis and trend analysis of buyer or vendor activity.
-
The use of purchase orders for all purchases.
-
The receipt of an invoice to put new vendors on the master file.
-
Periodic vendor surveys regarding potential buyer conflict of interest or ethics violations.
Pregunta 15
Pregunta
The data administration processing of all hourly payroll transactions has been outsourced to an external service provider by Easy-P Ltd. These include withholding pension contributions of employees, benefits, etc. The internal auditor has to check whether the payroll transactions are being processed correctly. Which of the following audit procedures would best accomplish the audit objective?
Respuesta
-
The internal auditor should select a stratified sample of all hourly and salaried payroll transactions for an entire reporting period, perform the necessary activities, and then compare the result with that obtained from the service provider.
-
The internal auditor should submit a set of test data to the external service provider during an annual audit and compare the service provider’s processing with the his own computations on the same test data.
-
The internal auditor should select a random sample of all hourly payroll transactions for the reporting period, re-compute pay and withholding items, and compare the result with that obtained from the service bureau.
-
The internal auditor should select a discovery sampling of all payroll transactions for an entire reporting period and then and analyse findings.
Pregunta 16
Pregunta
16 Which ONE of the following might be the possible objective of a programmed results audit?
Respuesta
-
Provide an opinion whether the financial statements has been prepared fairly
-
To ensure inclusion of only historical data in the audit procedures
-
To emphasise on outputs rather than inputs
-
Look for economy in audit activities in order to ensure substantial profits are earned.
Pregunta 17
Pregunta
An internal auditor should brief the audit team to check audit trail log to identify any authorized
system access attempts, which should include all of the following, EXCEPT:
Respuesta
-
What types of transaction has been attempted?
-
Who the authorized personnel for access into the system?
-
Which terminal is in use to make the attempt?
-
What type of data has been searched for?
Pregunta 18
Pregunta
Which of the following ‘audits’ has the highest degree of objectivity?
Respuesta
-
Operational audit of the HR function in order to hire and fire.
-
Compliance audit of overtime policy.
-
Performance audit of the production department.
-
Financial control audit over payroll procedures.
Pregunta 19
Pregunta
To expand its marketability, a financial institution has new investments in financial instruments. In
order to reduce the risks and as a hedging techniques it deployed several financial derivatives.
Recent internal audit review reports that the institution is apparently roving towards short-termism.
Identity which of the following procedure would result in the least amount of information needed to
be conveyed in terms of the audit reports?
Respuesta
-
Perform an analytical review of interest income as a percentage of the investment portfolio in comparison with a group of peer financial institutions.
-
Perform an analytical review that involves developing a chart to compare interest income plotted over the past ten years.
-
Take a random sample of loans made during the period and compare the riskiness of the loans with that of a random sample of loans made two years ago.
-
Develop a multiple regression time series analysis of income over the past five years, including such factors as interest rate in the economy, size of loan portfolio, and dollar amount of new loans each year.
Pregunta 20
Pregunta
What role should an internal auditor play during the planning phase of internal operating control
systems?
Respuesta
-
He should concentrate in designing the control procedures.
-
He should only concentrate on establishing policies for controls.
-
He should appraise the effectiveness of the internal controls.
-
He should focus on the procedures for the planning process.
Pregunta 21
Pregunta
Which ONE of the following is an example of an internal non-financial benchmark?
Respuesta
-
The labour rate of “A-grade” employees at a major rival’ plant.
-
The average actual cost per pound of a specific product at the company's most efficient plant becomes the benchmark for the company's other plants.
-
The company setting a benchmark of $50,000 for employee training programmes at each of the company's plants.
-
The percent of customer orders delivered on time at the company's most efficient plant becomes the benchmark for the company’s other plants.
Pregunta 22
Pregunta
What should an internal auditor do if the suggested corrective actions has not been undertaken by
the management?
Respuesta
-
The internal auditor should decide the amount of necessary review work.
-
The internal auditor may Allow management to decide when to review, since it is management’s ultimate responsibility.
-
The internal auditor should decide to conduct follow-up work only if management requests the auditor's assistance.
-
Write a follow-up audit report with all findings and their significance to the operations.
Pregunta 23
Pregunta
Internal auditor has a duty to report to the board and the senior management. Which ONE of the
following should not be included in such a report?
Respuesta
-
An annual report summary of the department's audit work schedule and financial budget.
-
Significant interim changes to the approved audit work schedule and financial budget.
-
An audit senior in charge of the audit was offered a permanent position in the auditee's department. The offer was made in between the completion of an audit and issuance of audit report.
-
An audit plan was approved by senior management and the board. Subsequent to the approval, senior management informed the audit director not to perform an audit of a division because the division's activities were very sensitive.
Pregunta 24
Pregunta
When it is a responsibility of an internal auditor to report fraud to the board?
Respuesta
-
The incidence of fraud of a material amount has been established to a reasonable certainty.
-
Irregular transactions have been identified and are under investigation.
-
Internal auditor has been tipped off regarding suspicious activities.
-
The review of all suspected fraud related transactions is complete.
Pregunta 25
Pregunta
Staffs of internal audit department should possess skills to perform their jobs appropriately.
Department’s staffing level, availability of education and training facilitates for staffs and audit
research are some of these. Which of the following should facilitate these requirements?
Respuesta
-
The internal auditing department's charter.
-
The internal auditing department's policies and procedures manual.
-
The annual plan for the internal auditing department.
-
Job descriptions for the various staff positions.
Pregunta 26
Pregunta
A chemical industry is in legal obligation to remove hazardous materials by shipment away from its
industry and be responsible for the surrounding environment. Bills of lading should be attached with
all relevant documents. The procedure should be conformed without failure. In order to ensure the above responsibilities has been carried out, what sampling method should an internal auditor use?
Respuesta
-
Attributes sampling.
-
Discovery sampling.
-
Targeted sampling.
-
Variables sampling.
Pregunta 27
Pregunta
Analysis of large volume of evidence can best be carried out by:
Respuesta
-
Interviews
-
Questionnaires
-
Forensic analysis
-
Computer
Pregunta 28
Pregunta
The HR department of ‘M Ltd’ administers and makes payment to the placement agency for new
employees. One of the recruitment staffs has devised a plan to set up unreal placement agencies
and would list one of these agencies as representing a potential candidate. Under this circumstance, what an internal auditor should undertake timely detection of this fraudulent activity?
Respuesta
-
Process all personnel agency invoices via a purchase order through the purchasing department.
-
Verify new vendors to firms listed in a professional association catalogue and/or verify the vendor name and address through the telephone book.
-
Monitor the closeness of the relationships of recruiters with specific vendors.
-
Require all employees to sign an annual conflict of interest statement.
Pregunta 29
Pregunta
Which of the following is most likely to be considered an indication of possible fraud?
Respuesta
-
Takeover results in new management strategies.
-
A sales-personnel has been reporting higher sales figure than average.
-
Quick growth through entering new markets.
-
An Internal Revenue Service audit of tax returns.
Pregunta 30
Pregunta
A company has a policy regarding sales returns. It is expected that the sales returns policy are followed to the letter. However, to test whether policies are in practice, an internal auditor systematically selected 10% of the actual returns recorded in September, October and November. These months are peak season of trade and about sales returns in these months are about 30% of the total sales returns. Which of the following might be the possible reason that the sample taken would result in a misleading conclusion reached by the internal auditor?
Respuesta
-
The small size of the sample relative to the population makes sampling risk unacceptable.
-
The failure to stratify the population according to sales volume results in bias.
-
The systematic selection of returns during the three months is not sufficiently random.
-
The error rates during these busiest months may not be representative of the whole year.
Pregunta 31
Pregunta
A company has 20,000 customers. In a statistical analysis, it determines that the mean and median
accounts receivable balances for the year are $18,000 and $14,000, respectively. Based on this information, the auditor can conclude that the distribution of the accounts receivable balances is
Respuesta
-
Continuous and negatively skewed.
-
Continuous and positively skewed.
-
Continuous and symmetrically skewed.
-
Continuous and evenly distributed between the mean and median.
Pregunta 32
Pregunta
A company has a policy in place for accounts payable. One of this policy states that the accounts
payable should be audited if the error rate is 1%. 500 accounts payable were randomly selected from
20,000 accounts payable transactions using a 95% confidence level. There were no errors found in
the sample. What should be the likely conclusion with 95% confidence level?
Respuesta
-
Indicate another sample is needed.
-
Prove there are no errors in accounts payable.
-
Indicate the null hypothesis is false
-
Fail to prove the error rate is above 1%.
Pregunta 33
Pregunta
Which of the following is not an advantage of face-to-face interviews over mail surveys?
Respuesta
-
The response rate is typically higher.
-
Interviewers can increase a respondent’s understanding of questions.
-
Survey designers can use a wider variety of types of questions.
-
They are less expensive since mailing costs are avoided.
Pregunta 34
Pregunta
The operating expenses in a division are under review of an internal auditor. He wishes to use
analytical review to assess the rightness of these accounts. When an analytical review should not be preferred as an appropriate verification technique?
Respuesta
-
The auditor notes strong indicators of a specific fraud involving an operating expenses account.
-
The company has relatively stable operations that have not changed much over the past year.
-
The auditor would like to identify large, unusual, or nonrecurring transactions during the year.
-
The operating expenses vary in relation to other operating expenses, but not in relation to revenue.
Pregunta 35
Pregunta
What is a control self-assessment?
Respuesta
-
This is a directive auditing tool.
-
This is a preventive auditing tool.
-
This is a detective auditing tool.
-
This is a corrective auditing tool.
Pregunta 36
Pregunta
An activity of internal audit function is:
Respuesta
-
special investigations into suspected fraud
-
to confirm that the final result is correct
-
to evaluate the system of internal control that are mainly concerned with the financial statements and accounting
-
to give an opinion on overall fairness of the financial statements and accounting
Pregunta 37
Pregunta
Which ONE of the following can be classified as an intimidation threat to independence?
Respuesta
-
The audit firm has been involved in maintaining the accounting records, or undertaking valuations that are incorporated in the financial statements
-
The audit firm is acting as a legal advocate for the client in litigation
-
Marshal is an influential finance director of a company that is being audited
-
The audit firm is working for long time for its client
Pregunta 38
Pregunta
All of the following are stages of risk management processes, EXCEPT
Respuesta
-
Identification
-
Assessment
-
Migration
-
Review
Pregunta 39
Pregunta
In order to improve the governance system of an organisation, which of the following should be covered by internal audit activity?
Respuesta
-
The internal audit activity ensure that the operational objectives are in line with organisation’s corporate goals.
-
The internal audit activity should review operations and plans to ensure consistency with organisational values.
-
The internal audit activity should be independent in determining the scope of internal auditing, performing work, and communicating results
-
The internal audit activity should control and review the overall usefulness of the quality of the audit planning.
Pregunta 40
Pregunta
Reliable data should be gathered and analysed to draw an appropriate audit conclusion. Which of
the following can be the most reliable form of evidence?
Respuesta
-
Internal document obtained from the auditee.
-
External document obtained directly from an external source.
-
Internal document are susceptible to careful internal review procedures.
-
Internal document that has been circulated through an outside party.
Pregunta 41
Pregunta
Which of the following is the most reliable evidence for purchase transaction?
Respuesta
-
Cancelled cheque issued in payment of the procured goods.
-
Production department's original requisition for the goods.
-
Receiving memorandum documenting the receipt of the goods.
-
Supplier's invoice for the purchased goods.
Pregunta 42
Pregunta
Which of the following is the best description as analytical evidence?
Respuesta
-
Comparing the items on the schedule with the accounts payable ledger or unpaid voucher file.
-
Comparing the balance on the schedule with the balances of prior years.
-
Comparing confirmations received from selected creditors with the accounts payable ledger.
-
Examining supplier’s invoices in support of selected items on the schedule.
Pregunta 43
Pregunta
In order to be assured of the physical existence of inventory in the warehouse, what tests should an internal auditor carry out?
Respuesta
-
Examination of the shipping documents supporting recorded transfers to and from the warehouse.
-
Obtaining written confirmation from management.
-
Physically observing the inventory in the warehouse.
-
Examination of warehouse receipts contained in the auditee's records.
Pregunta 44
Pregunta
Every business industry has to face risks of different types. Some are specific to the business industry
whilst others are common market risks. If an internal audit team needs to identify common risks faced by a company, what would be the most effective source of data from the following options?
Respuesta
-
Reminder lists
-
Flowcharts
-
Questionnaires
-
Research reported in professional journals
Pregunta 45
Pregunta
An internal auditor wants to check that whether there are any shortages of expensive inventory held
of retail sell by a company. What should be the most relevant approach for him?
Respuesta
-
Apply the retail method of inventory valuation.
-
Compare physical inventory counts to perpetual records.
-
Develop inventory estimates based on the gross profit percentage method.
-
Analyse current and previous inventory turnover rates.
Pregunta 46
Pregunta
A company needs to pay its trade debts and process supplier’s invoice without unnecessary delay. Thus, it needs to manage its cash accordingly. Which of the following audit procedure should be used to ascertain whether the responsible
department is carrying-out set procedures?
Respuesta
-
Ascertain the length of processing time between the receipts of the supplier’s invoice to the payment date for the related disbursement.
-
Interview the accounts payable manager to ascertain the procedures and standards for processing supplier invoices.
-
Compare the supplier’s invoice due date with the payment date as indicated on the cancelled check.
-
Compare the date stamped on the invoice for receipt with the corresponding payment date for the expenditure.
Pregunta 47
Pregunta
Why should an internal auditor compare copies of sales invoices to shipping documents?
Respuesta
-
In order to determine that customer shipments were billed.
-
In order to determine that sales that are billed were also shipped.
-
In order to determine that shipments to customers were also recorded as receivables.
-
In order to determine that the subsidiary accounts receivable ledger was updated.
Pregunta 48
Pregunta
What is the rationale of maintain ‘working paper’?
Respuesta
-
To provide the auditee a place to make responses to audit recommendations.
-
To make the audit report more readable by providing a place to append exhibits.
-
To provide the principal evidential support for the internal auditor's report.
-
To provide a place to summarise overall audit recommendations.
Pregunta 49
Pregunta
49 How might a negative feedback from an internal auditor results in a positive response?
Respuesta
-
By stating, ‘Your bookkeeper has failed to reconcile the bank statement each month.’
-
By stating, ‘The bank statements have not been reconciled each month.’
-
By stating, ‘Unfortunately, your bookkeeper has not taken the time to reconcile the bank statement each month.’
-
By stating, ‘You have apparently failed to inform your bookkeeper that the bank statements should be reconciled on a timely basis.’
Pregunta 50
Pregunta
If an internal auditor needs prompt management action from audit findings, which of following
would be the best procedure?
Respuesta
-
Delivering a lecture on the findings.
-
Showing a series of slides or overheads that graphically depict the findings; limit verbal commentary.
-
Using slides/overheads to support a discussion of major points.
-
Handing out copies of the report, asking the participants to read the report, and asking for questions.
Pregunta 51
Pregunta
When the limit for travel expenses of a particular sales executive exceeds, internal auditor should
conclude that
Respuesta
-
The majority of travel advances in the organisation exceed the prescribed maximum.
-
Travel advances are not controlled in accordance with existing policy.
-
The prescribed maximum travel advance is too low.
-
76% of all travel advances exceed the management prescribed maximum.
Pregunta 52
Pregunta
A business needs to keep its staff level to minimum for shortages of fund. As a result it is not possible to practice segregation of duties, at least for short-term. This results in a petty cashier being responsible for both maintaining petty cash and the imprest fund checking account reconciliation. What would be the appropriate audit test, if there is a suspicion that the cashier might adjust the opening balances to conceal a diversion of funds?
Respuesta
-
Compare monthly balances and use change and trend analysis.
-
Require additional monitoring by headquarters whenever improper segregation of duties exists at remote units.
-
Determine if any employees have high personal debt.
-
Determine if any employees are leading expensive lifestyles.
Pregunta 53
Pregunta
A company is considering using computer service centre to process its transactions. There is an
inherent risk that the service centre might accidentally update master files with transaction of
another company. What would be the best likely control procedure that provides assurance of the integrity of the
master files during updating processes?
Respuesta
-
A check for completeness of input, such as a computer sequence check.
-
A check for correct master files, such as a header label.
-
A check for input accuracy, such as a check of detail reports.
-
A check for accuracy of file maintenance, such as review of exception reports.
Pregunta 54
Pregunta
What is the primary concern in a programme results audit?
Respuesta
-
A determination that Financial statements are presented in accordance with GAAP.
-
A determination that desired benefits are being achieved.
-
A determination that the entity has complied with laws and regulations.
-
A determination that resources are managed economically and efficiently.
Pregunta 55
Pregunta
How would an internal auditor verify data access security in order to ensure the proper addition/deletion of authorizations?
Respuesta
-
Individuals who are not employees have no access privileges.
-
Revoked access privileges are cancelled on a weekly cycle.
-
Access privileges are activated promptly after they are authorised.
-
A systems programmer keeps records of all additions/deletions of access changes.
Pregunta 56
Pregunta
To ensure donations to a non-profit organisation are actually being deposited in the organisation’s
accounts immediately can be controlled by:
Respuesta
-
Use a safe-deposit box to receive all donations.
-
Carry out periodic internal audits of the organisation's cash receipts by tracing deposits to the original posting in the cash receipts records.
-
Require that all donations be made by cheque.
-
Require issuance of a confirmation receipt to all donors, with the receipt issued by the person who opens and deposits the cash receipts.
Pregunta 57
Pregunta
Government grants are to be used in accordance with set rules and regulations.
Which of the following procedures would not effective enough in order to learn applicable rules and
regulations?
Respuesta
-
Make inquiries of the chief financial officer, legal counsel, or grant administrators.
-
Review prior year working papers and enquire of officials as to changes.
-
Review applicable grant agreements.
-
Discuss the matter with the audit committee and make inquiries as to the nature of the requirements and the audit committee's objectives for the audit.
Pregunta 58
Pregunta
What does consultative approach to auditing emphasizes?
Respuesta
-
Imposition of corrective measures.
-
Participation with auditees to improve methods.
-
Fraud investigation
-
Implementation of policies and procedures.
Pregunta 59
Pregunta
An example of an efficiency measure is
Respuesta
-
The rate of absenteeism.
-
The goal of becoming a leading manufacturer.
-
The number of insurance claims processed per day.
-
The rate of customer complaints.
Pregunta 60
Pregunta
In which document should the responsibility to perform follow-up activities by internal audit
department be defined?
Respuesta
-
Internal auditing department's written charter.
-
Mission statement of the audit committee.
-
Engagement memo issued prior to each audit assignment.
-
Purpose statement within applicable audit reports.
Pregunta 61
Pregunta
Audit committee’s activities would be supportive for internal auditing department is none of the
following but
Respuesta
-
Review and approval of audit programmes.
-
Assurance that the external auditor will rely on the work of the internal auditing department whenever possible.
-
Review and endorsement of all internal audit reports prior to their release.
-
Support for appropriate follow-up of recommendations made by the internal auditing department.
Pregunta 62
Pregunta
A company should acknowledge and take corrective actions as soon as possible after receiving
feedback from internal auditor/audit firm regarding any of its existing practices in order to
Respuesta
-
To close the open audit issues as soon as possible.
-
To effect savings as early as possible.
-
To indicate concurrence with the audit findings.
-
To ensure that the auditor performance is evaluated.
Pregunta 63
Pregunta
Audit schedule can be determined by all of the following activities, EXCEPT
Respuesta
-
Developing audit programmes.
-
Review of risk factors.
-
Developing plan based on workload requirements.
-
Identifying auditable locations.
Pregunta 64
Pregunta
There are irregularities exists in a given population. An internal auditor wishes to identify at least one
irregularity. And then discontinue the sampling if one irregularity can be observed.
Which of the following would the most appropriate sampling plan?
Respuesta
-
Stop-and-go sampling.
-
Discovery sampling.
-
Variables sampling.
-
Attributes sampling.
Pregunta 65
Pregunta
How computer fraud can be discouraged?
Respuesta
-
By being willing to prosecute.
-
By avoiding whistle-blowers.
-
By overlooking inefficiencies in the judicial system
-
By accepting the lack of integrity in the system
Pregunta 66
Pregunta
When fraudulent activities take place, it leaves traces which are possible to trace back. Which of the
following may not be an indicator of possible fraud?
Respuesta
-
Managers regularly assume upon subordinates' duties.
-
Managers dealing in matters outside their profit centre’s scope.
-
Managers not complying with corporate directives and procedures.
-
Managers subject to formal performance reviews on a regular basis.
Pregunta 67
Pregunta
All of the following are attributes of ‘fraud’, EXCEPT:
Respuesta
-
Intentional deception.
-
Taking dishonest advantage.
-
Perpetration for the benefit or detriment of the organisation.
-
Negligence on the part of executive management.
Pregunta 68
Pregunta
Mr. Ashton Martin, an internal auditor of ‘Carrz Ltd’, had selected a random sample of 100 items
from a population of 2,000 items. The value of these sample were $10,000, and calculated the
standard deviation which was $10. If the achieved precision based on this sample was plus or minus
$4,000, what would be the minimum acceptable value of the population?
Respuesta
-
$196,000
-
$199,000
-
$199,800
-
204,000
Pregunta 69
Pregunta
During the audit of inventories, an internal auditor specified a precision which was higher than
specified during the initial stage of the audit programme. What would be the impact of the change in precision?
Respuesta
-
A decrease in population standard deviation.
-
An increase in population standard deviation
-
A decrease in required sample size.
-
An increase in required sample size
Pregunta 70
Pregunta
70 Which of the following factors will vary directly with a change in confidence level from 95% to 98%,
provided the sampling application was variable in nature?
Respuesta
-
Standard error of the mean.
-
Non-sampling error.
-
Achieved precision.
-
Point estimate of the arithmetic mean.
Pregunta 71
Pregunta
A questionnaire has the response choices as follows: (a) Probably a problem, (b) Possibly a problem, (c) Probably not a problem.Which of the following had been used in the questionnaire?
Respuesta
-
Trend analysis.
-
Ratio analysis.
-
Unobtrusive measures or observations.
-
Rating scales.
Pregunta 72
Pregunta
Which of the following factor should not be considered to determine the level of analytical
procedure that can be used?
Respuesta
-
Adequacy of the system of internal control
-
Significance of the area being examined
-
Precision with which the results of analytical audit procedures can be predicted.
-
Preparation of employee questionnaire policy
Pregunta 73
Pregunta
Which of the following states the difference between traditional audit procedures and controlled
self-assessment?
Respuesta
-
Shifts some of the responsibilities away from the auditors towards others such as work teams.
-
Allocated additional responsibilities to internal audit.
-
Reduces the level of collaboration required between managers and internal auditor.
-
Allows assessment to be carried out without any internal audit involvement whatsoever, therefore allowing them to focus their attention on other areas of the organisation.
Pregunta 74
Pregunta
All of the following are internal audit function, EXCEPT:
Respuesta
-
Examining financial and operating information
-
Review of the economy, efficiency and effectiveness of operations
-
Review of compliance with laws, regulations and other external requirements
-
Confirming that the final result (the sum) is correct
Pregunta 75
Pregunta
Attribute standards are:
Respuesta
-
Independence, objectivity, and nature of the work
-
Independence, communication of findings, and the resolution of problems affecting the risks accepted by management
-
Independence, objectivity and proficiency
-
Engagement planning, engagement execution, and progress monitoring
Pregunta 76
Pregunta
Argument for principles-based approach to corporate governance are all of the following, EXCEPT:
Respuesta
-
The same rules might not be suitable for every company
-
There are some aspects of corporate governance that cannot be regulated easily
-
Companies do not have the choice of ignoring the rules
-
The most suitable corporate governance practices can differ between companies
Pregunta 77
Pregunta
All of the following are element of audit risk, EXCEPT:
Respuesta
-
Inherent risk
-
Control risk
-
Defective risk
-
Detection risk
Pregunta 78
Pregunta
What does compliance audit engagements review on?
Respuesta
-
Review the extent to which the organisation complies with applicable laws and regulations.
-
In this engagement internal auditors sometimes assist clients by working in an advisory capacity
-
This audit are usually voluntary and may be necessary when an organisation intends to carry out a large financial transaction.
-
This is a one off investigations into a person, business or financial transaction.
Pregunta 79
Pregunta
A third party audit is the auditing of work performed by contract professionals that includes
outsourcing and co-sourcing costs.Contract audits may be carried out for a number of reasons which are all of the following, EXCEPT:
Respuesta
-
Effectiveness
-
Economy
-
Efficacy
-
Compliance
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