Question: 1
The following is an excerpt from an audit engagement workpaper:
A Company
Accounts Receivable
Date
Objective. To determine if the computer system is correctly recording all accounts receivable transactions.
Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of balances.
Conclusion: Based on the results of testing wherein all but three confirmations were returned, the accounts receivable balance is fairly presented in all material respects.
Which of the following is true regarding the workpaper?
Question: 2
If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken?
1. Identify business applications that require access.
2. Implement steps to continuously assess risks and controls.
3. Define objectives of continuous auditing.
4. Manage and report results.
A III, I, IV, II.
B II, I, III, IV.
C III, I, II, IV.
D II, III, I, IV.
Answer : C
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Question: 3
What does the following scatter gram suggest?
Question: 4
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: 5
A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below:
The graph indicates that: