IIA IIA-CIA-Part2 Quiz 52 Topic 9 Questions 256-260

Question: 1

An organization's policies allow buyers to authorize expenditures up to $50,000 without any other approval. Which of the following audit procedures would be most effective in determining if fraud in the form of payments to fictitious companies has occurred?

AUse generalized audit software to list all purchases over $50,000 to determine whether they were properly approved.

BDevelop a snapshot technique to trace all transactions by suspected buyers.

CUse generalized audit software to take a random sample of all expenditures under $50,000 to determine whether they were properly approved.

DUse generalized audit software to select a sample of paid invoices to new vendors and examine evidence that shows that services or goods were received.

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Question: 2

Production managers for a manufacturing company are authorized to prepare emergency purchase orders for raw materials. These manually prepared orders do not go through the purchasing department and do not require a receiving report. The managers forward the invoice and purchase order to the accounting department for payment. Which of the following internal controls would efficiently prevent abuse of this system?

AInstitute a company policy requiring rotation of orders among several suppliers.

BRequire a manual receiving report from the warehouse prior to payment.

CForbid the use of emergency purchase orders.

DReview the level of safety stock.

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Question: 3

Which of the following would most likely contribute to discrepancies between receiving reports and the number of units in a shipment?

AFailing to compare the quality of goods received with specifications.

BUsing inadequate vendor selection procedures.

CAccepting improper authorization for purchases.

DIndicating the quantities ordered on the receiving department's copy of the purchase order.

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Question: 4

Which of the following would have the least significance in an audit of the efficiency of a driver's license testing facility?

AClerical staff administer written tests to allow examiners more time to supervise driving tests.

BStaff are cross-trained to provide backup for other areas of the facility as required.

CA point-of-sale cashiering system reduces the need to reenter payment data.

DExaminers are required to be recertified on an annual basis.

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Question: 5

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?

AOn a rainy day, total sales are greater than expected when compared to the cost of ingredients used.

BOn a sunny day, total sales are less than expected when compared to the cost of ingredients used.

CBoth total sales and cost of ingredients used are greater than expected.

DBoth total sales and cost of ingredients used are less than expected.

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IIA IIA-CIA-Part2 Quiz:52 Topic:9 Questions:256-260