In order for internal auditors to be able torecognizepotential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?
Answer : D
Which of the following documents would provide the best evidence that a purchase transaction has actually occurred?
Answer : C
An auditor selected a random sample of 100 items from a population of 2,000 items. The total dollars in the sample were $10,000, and the standard deviation was $10. If the achieved precision based on this sample was plus or minus $4,000, the minimum acceptable value of the population would be
Answer : B
During the audit of inventories, an internal auditor specified a precision of 5% instead of the
4% contained in the preliminary audit program.
What would be the impact of the change in precision?
Answer : C
In a variables sampling application, which of the following factors will vary directly with a change in confidence level from 90% to 95%?
Answer : C
An audit team developed a preliminary questionnaire with the following response choices:
I.Probably not a problem.
II.Possibly a problem.
III.Probably a problem.
The questionnaire illustrates the use of
Answer : D
During an audit, the internal auditor should consider the following factor(s) in determining the extent to which analytical procedures should be used, Except
Answer : D
How does CSA differ from traditional methods of auditing?
Answer : A
Which of the following is not an activity of internal audit function?
Answer : D
Which of the following areas are addressed by attribute standards?
Answer : C
Your assurance firm is auditor of Happy Goods. The audit manager has just become engaged to the managing directors daughter, who he met through a mutual friend. The managing director owns 51% of the shares in Happy Goods. Which of the threat is not there in this case?
Answer : D
Which of the following is not an argument for principles-based approach to corporate governance?
Answer : C
The following are potential sources of evidence regarding the effectiveness of the division's total quality managementprogram. Assume that, all comparisons are for similar time periods and duration and current items are compared with similar items before the implementation of the total quality managementprogram.
The least persuasive evidence would be a comparison of
Answer : A
Which of the following is not a component of audit risk?
Answer : C
Accounts payable schedule verification may include the use of analytical evidence.
Which of the following is most appropriately described as analytical evidence?
Answer : B