IIA IIA-CIA-Part2 Quiz 150 Topic 7 Questions 746-750

Question: 1

To identify the amount of obsolete inventory that may exist in an organization, an internal auditor probably should collect information using all of the following procedures except

AConfirmation.

BScanning.

CRecompilation.

DAnalytical review.

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Question: 2

Which of the substantive field work procedures presented below provides the best information about completeness of recorded revenues?

AReconciling the sales journal to the general ledger control account.

BVouching charges made to the accounts receivable subsidiary ledger to supporting shipping records.

CVouching shipping records to the customer order file.

DReconciling shipping records to recorded sales.

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Question: 3

Confirmations are a highly regarded form of information. Confirmation is most effective in addressing the existence assertion for the

AAddition of a milling machine to a machine shop.

BSale of merchandise during regular course of business.

CInventory held on consignment.

DGranting of a patent for a special process developed by the organization.

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Question: 4

Observation is considered a reliable engagement procedure, but one that is limited in usefulness. However, it is used in a number of different engagement situations. Which of the following statements is true regarding observation as an engagement technique?

AIt is the most effective engagement methodology to use in filling out internal control questionnaires.

BIt is the most persuasive methodology to learn how transactions are really processed during the period under review.

CIt is rarely sufficient to satisfy any assertion other than existence.

DIt is the most persuasive technique for determining if fraud has occurred.

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Question: 5

One engagement procedure for an engagement to evaluate facilities and equipment is to test the accuracy of recorded depreciation. Which of the following is the best source of information that the equipment in question is in service?

AA review of depreciation policies and procedures.

BA comparison of depreciation schedules with a listing of insurance appraisals for the same equipment.

CA comparison of depreciation schedules with the maintenance and repair logs for the same equipment.

DA review of inventory documentation for the equipment.

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IIA IIA-CIA-Part2 Quiz:150 Topic:7 Questions:746-750