Question: 1
A company regularly invests excess short-term cash in trading securities. A reliable test of the valuation of those securities would be a
Question: 2
Which of the following sampling plans should an internal auditor use to estimate the number of units in a certain class of inventory without counting each item?
Question: 3
Which of the following is an example of sampling risk?
Question: 4
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive but performs no further followup. The auditor's actions would
i. Be in violation of the IIA Code of Ethics for withholding meaningful information.
ii. Be in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
iii. Not be in violation of either the IIA Code of Ethics or Standards.
Question: 5
A code of ethics within the internal auditing profession is necessary in order to
