Q:2-Which of the following is not a benefit of using information technology in solving audit problems?Mark one answer:It helps reduce audit risk.It improves the timeliness of the audit engagement.It increases audit opportunities.It improves the auditor's judgment.
Q:3-An auditor for a large wholesaler is evaluating the controls over the approval and oversight of credit sales.Which of the following procedures would be a control weakness?
Q:4-Which of the following would provide the most reliable information on the risk associated with an auditableactivity?
Q:5-An audit to test the system of controls over the purchase,distribution,and use of radioactive material is beingconducted at a company's plants. The process is well documented,and employees in the safety department arevery familiar with the department's procedures. Since the purchasing and facilities departments are involved inthe process,the auditor is considering reviewing their radioactive material-handling procedures as well. Theauditor should:
audit engagement?Mark one answer:Investigation of the physical security over access to the components of the LAN.The ability of the LAN application to identify data items at the field or record level and implement user accesssecurity at that level.Interviews with users to determine their assessment of the level of security in the system and the vulnerability of thesystem to compromise.The level of security of other LANs in the company which also utilize sensitive data.
Q:7-An organization's accounts payable function improved its internal controls significantly after it received anunsatisfactory audit report. When planning a follow-up audit of the function,what level of detection risk should beexpected if the audit and sampling procedures used are unchanged from the prior audit?
Q:8-Which of the following lists the audit activities in the order in which they would generally be completedduring a preliminary survey?
IV.Determine relevant engagement objectives.
Q:9-An audit of the quality control department is being planned. Which of the following would least likely be usedin the preparation of a preliminary survey questionnaire?Mark one answer:An analysis of quality control documents.The permanent audit file.The prior audit report.Management's charter for the quality control department.
Q:10-An internal auditor plans to use an analytical review to verify the correctness of various operating expensesin a division. The use of an analytical review as a verification technique would not be a preferred approach if.
Q:1-Which of the following would be the best source of information for a chief audit executive to use in planningfuture audit staff requirements?
Q:2-An employee who recently transferred into the internal audit activity has been assigned to audit the accountspayable system. Which function, if previously performed by the auditor,would represent a conflict of interest?
Q:3-Which source of audit evidence would provide the least value in flow charting an organization's purchasingprocess?Mark one answer:An interview with the purchasing supervisor.A review of a sample of purchase orders which were completed during the last month.A review of the purchasing policies and procedures manual.A walk-through of the process with a member of the purchasing staff.
Q:4-An auditor is using audit software to check inventory accuracy. Which of the following would be an indicatorof poor input edit controls?
Q:5-In an assurance engagement of treasury operations,an internal auditor is required to consider all of thefollowing issues except:
Q:6-Which of the following best describes the most important criteria when assigning responsibility for specifictasks required in an audit engagement?
Tasks must be assigned to the audit team member who is most qualified to perform them.