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Download Practice of Internal Auditing Exam Dumps

NEW QUESTION 51
Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's note stated.
"The ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate." In this situation:

A. The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.B. The auditor should have considered whether the information in the board report was compiled efficiently.C. Four quarters is not a large enough sample on which to base a conclusion.D. The auditor should have included the scratch paper in the workpapers.

Answer: A

Explanation:
Section: Volume A

 

NEW QUESTION 52
An organization's finance manager plans to implement a state-of-the-art management system to better manage the organization's receivables. The finance manager consulted the chief audit executive (CAE) and asked for her assistance in determining whether the organization is able to accommodate this system. How would the CAE proceed to determine the objectives of this engagement

A. Discuss the concerns with the finance manager and work together to agree on the engagement objectivesB. Review previous audit reports from the area and develop engagement objectives to address the area's key risks and controlsC. Ask the CEO to determine the scope and objectives of the engagementD. Request that the board disclose its concerns over governance for inclusion in the engagement

Answer: A

 

NEW QUESTION 53
Which of the following would be a legitimate action for the internal auditor to take when monitoring audit engagement results?
1. Disregard a certain risk because management and the board accepted the risk in the past.
2. Abdicate the responsibility for a particular risk because it is not part of the audit plan.
3. Obtain agreement from senior management that unresolved audit issues will be reported to the board.
Request corrective action from management in writing.

A. 2 and 3 onlyB. 3 and 4 onlyC. 1, 2, and 4 onlyD. 1 and 3 only

Answer: B

 

NEW QUESTION 54
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