IIA IIA-CIA-Part2 Quiz 144 Topic 7 Questions 716-720

Question: 1

During an operational audit engagement, an auditor compared the inventory turnover rate of a subsidiary with established industry standards in order to:

AEvaluate the accuracy of internal financial reports.

BTest controls designed to safeguard assets.

CDetermine compliance with corporate procedures regarding inventory levels.

DAssess performance and indicate where additional audit work maybe needed.

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Question: 2

A production manager ordered excessive raw materials for delivery to a separate company owned by the manager. The manager falsified receiving documents and approved the invoices for payment. Which of the following audit procedures would most likely detect this fraud?

ASelect a sample of cash disbursements and compare purchase orders, receiving reports, invoices, and check copies.

BSelect a sample of cash disbursements and confirm the amount purchased, purchase price, and date of shipment with the vendors.

CObserve the receiving dock and count materials received; compare the counts to receiving reports completed by receiving personnel.

DPerform analytical tests, comparing production, materials purchased, and raw materials inventory levels; investigate differences.

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Question: 3

The internal auditor is concerned about whether all the debits to the computer security expense account are appropriate expenditures. The most appropriate engagement procedure is to

ATake an attribute sample of computing invoices and determine whether all invoices are properly classified.

BPerform an analytical review comparing the amount of expenditures incurred this year with the amounts incurred on a trend line for the past 5 years.

CTake an attribute sample of employee wage expenses incurred by the outsourcing organization and trace to the proper account classification.

DTake a sample of all debits to the account and investigate by examining source documents to determine the nature and authority of the expenditure.

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Question: 4

One of the audit objectives for a manufacturing company is to verify that all rework is reviewed by the production engineer. Which of the following audit procedures would provide the best evidence for meeting this objective?

ATrace a sample of entries in the rework log to remedial action taken.

BTrace a sample of rework orders to entries in the rework log.

CTrace a sample of entries in the review log to rework orders.

DTrace a sample of rework orders to entries in the review log.

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Question: 5

A transportation department maintains its vehicle inventory and maintenance records in a database. Which of the following audit procedures is most appropriate for evaluating the accuracy of the database information?

AVerify a sample of the records extracted from the database with supporting documentation.

BSubmit batches of test transactions through the current system and verify with expected results.

CSimulate normal processing by using test programs.

DUse program tracing to show how, and in what sequence, program instructions are processed in the system.

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IIA IIA-CIA-Part2 Quiz:144 Topic:7 Questions:716-720