IIA IIA-CIA-Part2 Quiz 44 Topic 4 Questions 216-220

Question: 1

Which of the following examples of audit evidence is the most persuasive?

AReal estate deeds, which were properly recorded with a government agency.

BCanceled checks written by the treasurer and returned from a bank.

CTime cards for employees, which are stored by a manager.

DVendor invoices filed by the accounting department.

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Question: 2

What type of analysis is performed when an auditor tests for unusual variations in information by comparing the number of employees working at a factory site with the direct cost of production each month over a period of one year?

ATrend analysis.

BRatio analysis.

CRegression analysis.

DHorizontal analysis.

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Question: 3

In a payroll audit, a staff auditor suspects that signatures on some of the documents being sampled for examination are not authentic. What action should the auditor take before proceeding with the examination?

ASuggest to the payroll manager that the suspicious documents should be sent to the organization's security department for forensic review.

BKeep the suspicious documents in the workpaper file until the end of the engagement, and then discuss the suspicions with the payroll manager.

CDiscuss the suspicious documents with payroll staff to seek their views on the authenticity of the signatures.

DReview the suspicious documents with the chief audit executive and seek advice concerning further examination.

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Question: 4

Which of the following types of sampling techniques should an internal auditor use when testing the effectiveness of internal controls?

AMean-per-unit sampling.

BAttributes sampling.

CVariables sampling.

DDollar-unit sampling.

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Question: 5

In evaluating the validity of different types of audit evidence, which of the following conclusions is not correct?

ARecomputation, though highly valid, is limited in usefulness due to its limited scope.

BThe validity of documentary evidence is independent of the effectiveness of the control system in which it was created.

CInternally created documentary evidence is considered less valid than externally created documentary evidence.

DThe validity of confirmations varies directly with the independence of the party receiving the confirmation.

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IIA IIA-CIA-Part2 Quiz:44 Topic:4 Questions:216-220