IIA IIA-CIA-Part2 Quiz 148 Topic 9 Questions 736-740

Question: 1

Management believes that some specific sales commissions for the year were too large. The accuracy of the recorded commission expense for specific salespersons is best determined by

AComputation of selected sales commissions.

BCalculating commission ratios.

CUse of analytical procedures.

DTests of overall reasonableness.

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Question: 2

An internal auditor traces copies of sales invoices to shipping documents to determine that

ACustomer shipments were billed.

BSales that are billed were also shipped.

CShipments to customers were also recorded as receivables.

DThe subsidiary accounts receivable ledger was updated.

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Question: 3

A large manufacturer has a transportation division that supplies gasoline for the organization's vehicles. Gasoline is dispensed by an attendant who records the amount issued on a serially prenumbered gasoline disbursement form, which is then given to the accounting department for proper recording. When the quantity of gasoline falls to a certain level, the service station attendant prepares a purchase requisition and sends it to the purchasing department where a purchase order is prepared and recorded in a gasoline purchases journal. Which of the following engagement procedures best determines whether gasoline disbursements are fully recorded?

ACompare the gasoline purchase requisitions with the gasoline disbursement records.

BSelect a number of gasoline purchases from the gasoline purchases journal and compare them with their corresponding purchase orders. Ascertain that the purchases are serially prenumbered, are matched with purchase requisitions, and are authorized by someone independent of employees of the service station.

CPerform analytical procedures comparing this period's gasoline consumption with prior periods.

DMatch the quantity of gasoline disbursed according to disbursement forms with an independent reading of quantity disbursed at the pump.

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Question: 4

To control daily operating costs, an organization decreased the number of times a messenger service was used each day. Despite those measures, the monthly bill continued to increase. What procedure should the internal auditor use to detect whether improper services were being billed?

AReconcile a sample of messenger invoices to pickup receipts.

BTest the mathematical accuracy of a sample of messenger invoices.

CScan ledger accounts and messenger invoices.

DObserve daily use of the messenger service.

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Question: 5

To determine whether credit controls are inconsistently applied, preventing valid sales to creditworthy customers, the internal auditor should

AConfirm current accounts receivable.

BTrace postings on the accounts receivable ledger.

CAnalyze collection rates and credit histories.

DCompare credit histories for those receiving credit and for those denied credit.

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IIA IIA-CIA-Part2 Quiz:148 Topic:9 Questions:736-740