IIA IIA-CIA-Part2 Quiz 158 Topic 8 Questions 786-790

Question: 1

A company's accounts receivable turnover rate decreased from 7.3 to 4.3 over the last 3 years. What is the most likely cause for the decrease?

AAn increase in the discount offered for early payment.

BA more liberal credit policy.

CA change in net payment due from 30 to 25 days.

DIncreased cash sales.

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Question: 2

Based on the activity reported for the meter replacement program, an internal auditor would conclude that

AEstablished operating standards are understood and are being met.

BAny corrective action needed has probably been taken during the quarter.

CDeviations from the goal should be analyzed and corrected.

DMeters should be changed every 3 years.

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Question: 3

Based on the activity reported for leaks repaired in the first quarter, an internal auditor would conclude that

AEstablished operating standards are understood and are being met.

BDeviations from the goal should be analyzed and corrective action should be taken.

CThe operating standard should be changed.

DThe leak-repair program is overstaffed.

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Question: 4

Based on the activity reported for the unmetered water, an internal auditor would conclude that

AEstablished operating standards are understood and are being met.

BFurther audit investigation of unmetered water is not warranted.

CDeviations from the goal were probably not corrected.

DThe operating standard should be changed.

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Question: 5

As used in the verification of an accounts payable schedule, which of the following is best described as an analytical test?

AComparing the items on the schedule with the accounts payable ledger or unpaid voucher file.

BComparing the balance on the schedule with the balances of prior years.

CComparing confirmations received from selected creditors with the accounts payable ledger.

DExamining vendors' invoices in support of selected items on the schedule.

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IIA IIA-CIA-Part2 Quiz:158 Topic:8 Questions:786-790