IIA-CRMA

Which of the following controls is not appropriate for sales in a manufacturing organization?A . Customers' orders are recorded promptly.B . Goods shipped are matched with valid customer orders.C . Goods returned are inspected for damage by the receiving department for proper disposition.D . Sales department approval is required for...

The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take? A. The CAE should agree with the audit...

Which of the following controls is not appropriate for sales in a manufacturing organization?A . Customers' orders are recorded promptly.B . Goods shipped are matched with valid customer orders.C . Goods returned are inspected for damage by the receiving department for proper disposition.D . Sales department approval is required for...

Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?A . The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.B . The auditor tested...

Which of the following would be considered a preventive control?A . A library control log.B . A review of exception reports.C . A password lock on a server.D . A software scan of financial records for irregularities.View AnswerAnswer: C

Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?A . They serve as a reminder of what controls should exist in a process.B . They require yes/no responses to specific questions, not open-ended responses.C . They do not capture all controls that may...

While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because...

Why are preventative controls generally preferred to detective controls?A . Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.B . Because preventive controls are more sensitive and identify more exceptions than detective controls.C . Because preventive controls include output procedures,...

If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?A . Terminate the audit engagement in full because an operational audit will not be productive...

During an account receivables audit, an internal auditor found a significant number of input errors resulting in a $500, 000 balance understatement. Which of the following is the most important question the internal auditor should ask to develop an appropriate recommendation for this finding?A . Who?B . How?C . Why?D...