Question: 1
Which of the following represents appropriate evidence of supervisory review of engagement workpapers?
I . A supervisor's initials on each workpaper.
II . An engagement workpaper review checklist.
III . A memorandum specifying the nature, extent, and results of the supervisory review of workpapers.
IV . Performance appraisals that assess the quality of workpapers prepared by auditors.
Question: 2
As a result of a recent discovery of false information on employment applications, an internal auditor has reviewed hiring procedures. Which of the following represents a weakness in the control system?
I . Applicants are not required to have their signed applications legally authenticated.
II . Applicants' educational information is not validated with the educational institution before employment is offered.
III . Information related to applicants' long-term work history is not validated before employment is offered.
Question: 3
After issuance of the engagement final communication for an audit of an organization's accounts payable function, which of the following should be sent satisfaction surveys?
I . Manager of disbursements.
II . Controller.
III . Chief operating officer.
IV . Audit committee members.
Question: 4
In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?
I . Audit team's knowledge of the audited area.
II . Usefulness of the audit results.
III . Quality of management of the internal audit activity.
IV . Clarity of the scope and objectives of the audit engagement.
Question: 5
An audit of a Web-based third-party payment processor determined that a programming error enabled customers to create multiple accounts for each mailing address. This caused problems during the processing of credit card transactions. Management agreed to correct the program and notify customers with multiple accounts that the accounts would be consolidated. What should the auditor do in response?
I . Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
II . Evaluate the adequacy and effectiveness of the corrective action proposed by management.
III . Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
IV . Do nothing because management has agreed to address the problem.
