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To identify shortages of specific items in an inventory of expensive goods held for retail sale, the most appropriate audit work step is to
Which of the following documents would provide the best evidence that a purchase transaction has actually occurred?
In order to ensure the proper addition/deletion of authorizations in an operational audit of data access security, an internal auditor would verify that
Which of the following is not an argument for principles-based approach to corporate governance?
An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division.
The use of an analytical review as a verification technique would not be a preferred approach if
An audit of accounts payable was made to determine if the error rate was within the stated policy of 0.5%. One hundred of the 10,000 accounts payable transactions were randomly selected using a 95% confidence level. No errors were found.
With 95% certainty, one can conclude that the sample results
During an audit, the internal auditor should consider the following factor(s) in determining the extent to which analytical procedures should be used, Except
Which of the following techniques is best for emphasizing a point in a written communication?
In planning a system of internal operating controls, the role of the internal auditor is to
The appropriate sampling plan to use to identify at least one irregularity, assuming some number of such irregularities exist in a population, and then to discontinue sampling when one irregularity is observed is
To test compliance with a policy regarding sales returns recorded during the most recent year, an auditor systematically selected 5% of the actual returns recorded in March and April. Returns during these two busiest months of the year represented about 25% of total annual returns.
Error projections from this sample have limited usefulness because
Which of the following tests can help the auditor to evaluate the adequacy of the company's allowance for doubtful accounts?
The requirements for staffing level, education and training, and audit research should be included in
The purchasing manager of a manufacturing company was concerned with the rising prices of some direct materials provided by a supplier. The purchasing manager told the supplier to either maintain the current prices or withdraw as a supplier for the company's direct materials. The supplier devised a plan to circumvent the purchasing manager's intent without actually violating the purchasing manager's mandate.
Which one of the following is the probable action taken by the supplier?
During the audit of inventories, an internal auditor specified a precision of 5% instead of the 4% contained in the preliminary audit program.
What would be the impact of the change in precision?
The following are potential sources of evidence regarding the effectiveness of the division's total quality management program. Assume that, all comparisons are for similar time periods and duration and current items are compared with similar items before the implementation of the total quality management program.
The least persuasive evidence would be a comparison of
Which of the following activities is not included in determining the audit schedule?
TESTED 18 May 2024