Question: 1
Shipping documents should be traced to and compared with sales records or invoices to
Question: 2
As part of a payroll engagement, an internal auditor used an internal control questionnaire (ICQ). Positive responses were given to each of the following questions by the payroll department manager:
1. Is authorization by the personnel department required to make additions to the payroll and to change pay rates?
2. Are check totals reconciled to payroll register data before checks are distributed to employees?
3. Are the functions of preparing the payroll and distributing paychecks performed by different persons?
In which phase of the engagement will the internal auditor confirm these responses?
Question: 3
An internal auditor performs an analytical review by comparing the gross margins of various divisional operations with those of other divisions and with the individual division's performance in previous years. The internal auditor notes a significant increase in the gross margin at one division. The internal auditor does some preliminary investigation and also notes that no changes occurred in products, production methods, or divisional management during the year. The most likely cause of the increase in gross margin is a(n)
Question: 4
An organization manufacturing special-order products is experiencing excessive rates of rejection of finished products. An engagement procedure to identify the source of the problem is
Question: 5
While testing a division's compliance with company affirmative-action policies, an auditor found that
1. 5% of the employees are from minority groups.
2. No one from a minority group has been hired in the past year.
The most appropriate conclusion for the auditor to reach is that
