Question: 1
Which of the following is a benefit from reduced testing during a particular phase of an audit engagement?
Question: 2
Which of the following would be the least desirable criteria against which to judge current operations of a company's treasury function?
Question: 3
A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an auditor look for as an indicator of employee theft of food from a specific store?
Question: 4
To promote a positive image within an organization, a chief audit executive (CAE) adjusted the audit plan to focus on assurance engagements that highlighted potential costs to be saved. Negative observations were to be omitted from engagement final communications. Which action taken by the CAE would be considered a violation of the Standards?
I . The focus of the audit function was changed without modifying the audit charter or notifying the audit committee.
II . Negative observations were omitted from the engagement final communications.
III . Cost savings and recommendations were highlighted in the engagement final communications.
Question: 5
Which of the following actions would be considered a violation of the Standards?
I . Drafts of engagement communications were reviewed with the audit client to obtain input. The client's comments were considered when developing the engagement final communication.
II . An auditor participated as part of a development team to review the control procedures to be incorporated into a major computer application under development.
III . Given limited resources, the chief audit executive performed a risk analysis to determine which functions to audit.
