An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results.

An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. The auditors...

Which of the following represents the auditor’s best recommendation in this situation?

During an audit of executive travel, an auditor noted that the president’s travel expense reimbursements were approved by an executive secretary who reported to the president. The organization’s reimbursement policy requires all travel expense reimbursements to be approved by the traveler’s supervisor, but it does not address the president’s reimbursements. Which of the following...

The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:

The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:A . Determining if controls over record keeping and reporting are adequate and effective.B . Reviewing data provided by information systems to test compliance with external requirements.C . Determining if information systems provide management with timely...

Which of the following would be a red flag that indicates the possibility of inventory fraud?

Which of the following would be a red flag that indicates the possibility of inventory fraud? I. The controller has assumed responsibility for approving all payments to certain vendors. II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it. III. Sales commissions are not...

In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:

In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:A . Tell the employee a piece of information obtained from a coworker in a previous interview.B . Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.C . Explain that the auditor’s...

If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?

If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?A . The experience and knowledge of the auditor.B . The adverse consequences of noncompliance.C . The acceptable level of risk of making an incorrect audit conclusion.D ....