IIA IIA-CIA-Part2 Quiz 116 Topic 1 Questions 576-580

Question: 1

In determining whether transactions have been recorded, the direction of the audit testing should be from the

AGeneral ledger balances.

BAdjusted trial balance.

COriginal source documents.

DGeneral journal entries.

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Question: 2

Identification of an appropriate population to sample is dependent upon audit objectives. A population of entries in an asset repairs expense file is an appropriate population if the audit objective is to determine whether

AExpenditures for fixed assets have been improperly expensed.

BNoncapital repair expenditures have been properly charged to expense.

CNoncapital repair expenditures have been recorded in the proper period.

DExpenditures for fixed assets have been recorded in the proper period.

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Question: 3

Which of the following characteristics most likely will heighten an auditor's concern about the risk of material misstatements due to fraud in an entity's financial statements?

AThe entity's industry is experiencing declining customer demand.

BEmployees who handle cash receipts are not bonded.

CBank reconciliations usually include in-transit deposits.

DEquipment is often sold at a loss before being fully depreciated.

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Question: 4

For the chief audit executive (CAE), the financial reporting process encompasses the steps to

ADetect all fraud that is occurring throughout the organization.

BCreate information to help prepare the financial statements and related notes.

CProvide all staff with information regarding raises and promotions.

DMake sure the internal control matches up the specifications from the AIPA.

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Question: 5

A specific objective of an audit of a company's expenditure cycle is to determine whether all goods paid for have been received and charged to the correct account. This objective addresses which of the following primary objectives identified in the Standards?

i. Reliability and integrity of financial and operational information.

ii. Compliance with laws, regulations, and contracts.

iii. Effectiveness and efficiency of operations.

IV. Safeguarding of assets.

AI and II only.

BI and IV only.

CI, II, and IV only.

DII, Ill, and IV only.

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IIA IIA-CIA-Part2 Quiz:116 Topic:1 Questions:576-580