IIA IIA-CIA-Part2 Quiz 20 Topic 1 Questions 96-100

Question: 1

An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?

AInterviews provide the opportunity to insert questions to probe promising areas.

BInterviews are the most efficient way to upgrade the information to the level of objective evidence.

CInterviewing is the least costly audit technique when a large amount of information is involved.

DInterviewing is the only audit procedure which does not require confirmation of the information that is obtained.

Show Answer

Question: 2

Monetary-unit sampling is most useful when the internal auditor:

AIs testing the accounts payable balance.

BCannot cumulatively arrange the population items.

CExpects to find several material errors in the sample.

DIs concerned with overstatements.

Show Answer

Question: 3

If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?

AAttributes sampling.

BDiscovery sampling.

CTargeted sampling.

DVariables sampling.

Show Answer

Question: 4

Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?

AInternational Accounting Standards require the internal auditor to include audit procedures which would detect fraud if it would cause a material misrepresentation of the financial statements.

BInternal auditors do not have any specific responsibilities with respect to including fraud-related audit procedures.

CProper audit procedures, when carried out with due professional care, will guarantee that fraud, if present, will be detected.

DIf significant control weaknesses are detected, additional tests should be directed toward other indicators of fraud.

Show Answer

Question: 5

An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. Which of the following statistical sampling methods would be most appropriate for this test?

AAttributes sampling.

BDiscovery sampling.

CProbability-proportional-to-size sampling.

DMean-per-unit sampling.

Show Answer

IIA IIA-CIA-Part2 Quiz:20 Topic:1 Questions:96-100