Question: 1
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:
Question: 2
Which of the following results from computer assisted audit techniques provides the most significant indication that additional audit work is needed?
Question: 3
An internal auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
''A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.''
The auditor did not place any audit verification symbols on this workpaper.
Which of the following changes would most improve the auditor's workpaper?
Question: 4
When comparing an organization's current performance to that of the prior year, an internal auditor found that:
Total labor costs had increased.
More overtime costs had been incurred.
The total number of workers had increased.
Net income was 10 percent lower.
Based solely on this information, which of the following is a valid conclusion?
Question: 5
An internal auditor would most likely judge an error in an account balance to be material if the error involves:
