IIA IIA-CIA-Part1 Quiz 81 Topic 4 Questions 401-405

Question: 1

Which of the following items of evidence is most valid to support a finding that a public utility's repair crews are sometimes required to work under unsafe conditions?

AVideotapes of repair crews working in a situation that is unsafe.

BAudio taped testimonials from repair crew members who were required to work under unsafe conditions.

CReports showing increases in the number of days of sick leave for individuals on repair crews.

DWritten and signed descriptions from repair crew members of the unsafe conditions that they have had to endure.

Show Answer

Question: 2

Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

AThe contractor's certification that it has not incurred any waste or inefficiencies.

BA walk-through of the contractor's manufacturing and development facilities.

CAn examination of the nature of contract expenses incurred.

DA comparison of contract expenses with those of similar projects.

Show Answer

Question: 3

During a review of a division's operations, an internal auditor notes that sales and customer base are unchanged, while inventory and gross margin have increased significantly. Which of the following audit procedures would be most relevant in substantiating management's assertion that the gross margin increase is due to increased efficiency in manufacturing operations?

AObtain a physical count of inventory.

BFor a sample of products, compare costs-per-unit this year to those of last year, test cost build-ups, and analyze standard cost variances.

CTake a physical inventory of equipment to determine if there were significant changes.

DSelect a sample of finished goods inventory and trace raw materials cost back to purchase prices in order to determine the accuracy of the recorded raw materials price.

Show Answer

Question: 4

The work papers for an audit of hazardous-materials handling and disposal at an engineering research facility provide evidence that the following procedures were performed.

Drums of hazardous waste not yet shipped off-site were inventoried. The physical count agreed with the company's inventory records.

A sample of hazardous-waste shipments received at the disposal site was compared to bills of lading and company records. No errors were detected.

The audit staff observed engineering personnel during the handling of hazardous materials. No company policy violations were noted.

The reconciliation of waste drums to the inventory records provides evidence that:

AHazardous-waste materials were being disposed of as prescribed by company policy.

BThe amount of hazardous materials being used was accurately recorded.

CRecords of drums shipped to the waste disposal site were being maintained.

DAll hazardous-waste drums in inventory were accounted for.

Show Answer

Question: 5

An internal auditor for a large bank is reviewing the collectability of a loan that is secured by real property. The best evidence of the loan's collectability would be:

AA recent independent appraisal of the value of the real property.

BA document showing the loan committee's approval of the loan.

CThe borrower's confirmation of the loan balance.

DA properly completed and signed loan application form.

Show Answer

IIA IIA-CIA-Part1 Quiz:81 Topic:4 Questions:401-405