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NEW QUESTION 21
The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?
- A. Workpaper review allows for staff training and development.
- B. Dating and initialing each workpaper provides evidence of review.
- C. Workpapers may be amended during the review process.
- D. Review notes of questions that arise during the review process must be retained.
Answer: D
NEW QUESTION 22
During an internal audit, an organization’s processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.
Which of the following tests would best help the internal auditor detect fraudulent activity?
- A. Compare vendor summaries.
- B. Review raw material purchase quantities.
- C. Search for gaps in check numbers.
- D. Check inventory levels.
Answer: D
NEW QUESTION 23
According to COSO, which of the following describes a principle related to the control environment?
- A. The organization identifies and assesses changes that could significantly impact the system of internal control.
- B. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
- C. The organization performs evaluations to ascertain whether internal control components are present and functioning.
- D. The organization selects and develops control activities that contribute to the mitigation of risks.
Answer: B
NEW QUESTION 24
An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization’s investments. Which of the following is the most appropriate course of action regarding the auditor’s use of this functionality?
- A. The auditor should perform a manual recalculation of several results to validate and document the results.
- B. The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.
- C. The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.
- D. The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.
Answer: A
NEW QUESTION 25
According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization’s operations?
- A. The services impose no responsibility to communicate information other than to the engagement client.
- B. The services may preclude assurance services from the consulting engagement.
- C. The services must be aligned with those defined in the internal audit charter.
- D. The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.
Answer: D
NEW QUESTION 26
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