IIA IIA-CIA-Part2 Quiz 4 Topic 2 Questions 16-20

Question: 1

A company's policy requires that all customers be treated in a fair and consistent manner. Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?

ACompare the aging of outstanding receivables due from each customer.

BCompare credit reports with annual sales for a sample of customers.

CCompare the ratio of outstanding receivables to the authorized credit limit for each customer.

DCompare the sales discounts offered to each customer.

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Question: 2

What would be used to determine the collectability of accounts receivable balances?

AThe file of related shipping documents.

BNegative accounts receivable confirmations.

CPositive accounts receivable confirmations.

DAn aged accounts receivable listing.

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Question: 3

Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

AVendor fuel invoices that have been reconciled to inventory records.

BTime cards completed by aircraft cleaning and fueling crews.

CObservation of selected aircraft while they are being refueled and cleaned.

DComparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.

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Question: 4

Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?

ATagging and tracing.

BGeneralized audit software.

CIntegrated test facility.

DSpreadsheet analysis.

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Question: 5

Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?

AThe auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.

BConditions that were not specifically considered by the auditor may go untested.

CThe approach requires the creation of 'dummy companies,' possibly destroying or altering actual company data in the process.

DInclusion of atypical data in the test data may cause errors to be noted on the exception report.

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IIA IIA-CIA-Part2 Quiz:4 Topic:2 Questions:16-20