IIA IIA-CIA-Part2 Quiz 141 Topic 5 Questions 701-705

Question: 1

An internal auditor whose organization is in the process of acquiring another entity has been requested to verify that cash for the entity being acquired is properly stated. The engagement technique that will yield the most persuasive information is

AExamination of the organization's escheatment account.

BInterview with the organization's treasurer and cash manager.

CPreparation and review of standard bank confirmation inquiries.

DAnalytical computations comparing current cash in the bank with previous accounting periods.

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Question: 2

Which of the following procedures provides the most relevant information to determine the adequacy of the allowance for doubtful accounts receivable?

AConfirm the receivables.

BAnalyze the following month's payments on the accounts receivable balances outstanding.

CTest the controls over the write-off of accounts receivable to ensure that management approves all write-offs.

DAnalyze the allowance through an aging of receivables and an analysis of current economic data.

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Question: 3

Which of the following are least valuable in predicting the amount of uncollectible accounts for an organization?

APublished economic indices indicating a general business downturn.

BDollar amounts of accounts actually written off by the organization for each of the past six months.

CTotal monthly sales for each of the past six months.

DWritten forecasts from the credit manager regarding expected future cash collections.

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Question: 4

To be sufficient, audit evidence should be

AWell-documented and cross-referenced in the work papers.

BBased on references that are considered competent.

CDirectly related to the engagement observation and include all of the elements of an engagement observation.

DConvincing enough for a prudent person to reach the same conclusion as the auditor.

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Question: 5

Reliable evidence is best defined as evidence that

AIs reasonably free from error and bias and faithfully represents what it purports to represent.

BIs obtained by observing people, property, and events.

CIs supplementary to other evidence already gathered and tends to strengthen or confirm it.

DProves an intermediate fact, or group of facts, from which still other facts can be inferred.

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IIA IIA-CIA-Part2 Quiz:141 Topic:5 Questions:701-705