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If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?
If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?A . Attributes sampling.B . Discovery sampling.C . Targeted sampling.D . Variables sampling.View AnswerAnswer: B
What does the following scatter gram suggest?
What does the following scatter gram suggest?A . Sales revenue is related to training costs.B . The training program is not effective.C . Increases in training costs consistently increase sales revenue.D . One data point is incorrectly plotted.View AnswerAnswer: A
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur.
An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:A . Identify the area that has the greatest volume...
An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation.
An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. The primary deficiency with the above...
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?
Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?A . Productivity ratio.B . Productivity index.C . Operating ratio.D . Resource utilization rate.View AnswerAnswer: C
Which of the following audit procedures would not be relevant for this objective?
An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. Which of the following audit procedures would not be relevant for this objective?A . Examine supporting...
Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?
An auditor is using an internal control questionnaire as part of a preliminary survey. Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?A . Interviews provide the opportunity to insert questions to probe promising areas.B . Interviews are the most efficient...
When internal auditors provide consulting services, the scope of the engagement is primarily determined by:
When internal auditors provide consulting services, the scope of the engagement is primarily determined by:A . Internal auditing standards.B . The audit engagement team.C . The engagement client.D . The internal audit activity's charter.View AnswerAnswer: C
After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use.
After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use.A . Simple random sampling to select a sample of vouchers processed by the...
A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below:
A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below: The graph indicates that:A . A richer person always sees more films than a poorer person.B . The number of films seen per month is a linear...
