IIA IIA-CIA-Part2 Quiz 145 Topic 8 Questions 721-725

Question: 1

For review of an accounting department's bank reconciliation unit, which of the following is an appropriate engagement work program step for the review of canceled checks for authorized signatures?

AComparing the check date with the first cancellation date.

BDetermining that all checks are to be signed by individuals authorized by the board.

CExamining a representative sample of signed checks and determine that the signatures are authorized in the organizational signature book.

DCompleting the tests of controls over check signatures in 4 hours.

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Question: 2

To ascertain that all credit sales are recorded in accounts receivable, an internal auditor should

AConfirm selected accounts receivable balances by direct correspondence with customers.

BTrace from a sample of subsidiary ledger entries to related sales invoices and to related shipping documents.

CTrace from a sample of customer purchase orders to related shipping documents.

DTrace from a sample of shipping documents to related sales invoices and subsidiary ledger.

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Question: 3

To determine whether refunds granted to customers were properly approved, an internal auditor should vouch accounts receivable entries to

ASales invoices.

BRemittance advices.

CShipping documents.

DCredit memos.

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Question: 4

During an engagement to evaluate travel expenses, the accounting supervisor tells the internal auditor that each expense report is reviewed and approved before costs are reimbursed to the traveler. Which of the following is the best course of action for the internal auditor to take?

ARequest the supervisor to put the statement in writing.

BReview a sample of expense reports for proper approval.

CConserve engagement resources by accepting the statement and redirect work into another area.

DCorroborate this information with the controller.

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Question: 5

An organization has outsourced many services, including waste collection, cafeteria, and custodial services previously performed internally. Management requests an evaluation of contract compliance and the overall performance of the organizations performing the outsourced activities. Which of the following engagement procedures is the least effective in accomplishing the engagement objectives?

AComparison of current costs with the costs of performing the same services before they were outsourced.

BComparison of charges with the terms of the outsourcing contract.

CA survey of users' satisfaction with the services performed by the outsourcer.

DComparison of identified activities for each outsourcer with 'best practices' of other outsourcers.

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IIA IIA-CIA-Part2 Quiz:145 Topic:8 Questions:721-725