Question: 1
Which of the following analytical review procedures should an auditor use to determine if a change in investment income during the current year was due to changes in investment strategy, changes in portfolio mix, or other factors?
Question: 2
Assume an internal auditor computes an inventory turnover rate by product line and identifies a number of product lines with a rate of less than 3.5. Which of the following conclusions can be justified by these engagement results?
i. The identified product lines contain obsolete inventory.
ii. Inventory is valued at more than net realizable value.
iii. Inventory costs are too high because the organization is carrying obsolete inventory.
Question: 3
Assume the internal auditor did not find a satisfactory explanation for the results of the analytical procedures performed and has conducted the appropriate follow-up procedures. The engagement in this area is otherwise complete. Which of the following would be the most appropriate action to take?
Question: 4
An internal auditor should exercise due professional care in performing assurance engagements. Due professional care includes
Question: 5
Due professional care implies reasonable care and competence, not infallibility or extraordinary performance. Thus, which of the following is unnecessary?