Q211. Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?

Q212. Which of the following is the primary reason the chief audit executive should consider the organization’s strategic plans when developing the annual audit plan?

Q213. An internal audit activity is planning its first audit of IT shared services. Which of the following controls would typically be evaluated first?

Q214. In a client satisfaction survey for an internal audit engagement, client management should be asked to assess which of the following factors?
I. Audit team’s knowledge of the audited area.
II. Usefulness of the audit results.
III. Quality of management of the internal audit activity.
IV.
Clarity of the scope and objectives of the audit engagement.

Q215. An internal auditor has been assigned to perform a quality audit on a manufacturing plant. Which course of action should the auditor perform first?

Q216. Which of the following factors would not be considered in determining appropriate follow-up procedures?

Q217. Senior management requested that the internal audit activity perform a consulting project to assist in making a decision on a new software system Which of the following would be used to determine the engagement objectives?

Q218. 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 represents the auditor’s best recommendation in this situation?

Q219. Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets?
I. Physically inspect all assets on the organization’s property.
II. Select a sample department and physically inspect assets in the department.
III. Select a sample from the organization’s records of physical assets and physically locate each asset.
IV.
Identify assets at a sample of locations and trace to the organization’s records.

Q220. Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

Q221. Which of the following behaviors could represent a significant ethical risk if exhibited by an organization’s board?
1. Intervening during an audit involving ethical wrongdoing.
2. Discussing periodic reports of ethical breaches.
3. Authorizing an investigation of an unsafe product.
4. Negotiating a settlement of an employee claim for personal damages.

Q222. After concluding a preliminary assessment, the engagement supervisor prepared a draft work program According to HA guidance which of the following would be tested by this program?

Q223. Which characteristic of risk assessment makes it a useful tool for audit planning?

Q224. To effectively communicate the acceptance of risk in an organization a chief audit executive must first consider which of the following?

Q225. An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?

Q226. Which of the following is a justifiable reason for omitting advance client notice when planning an audit engagement?

Q227. An internal auditor discovered that sales contracts with business clients were not stored in the electronic document management database instead they were scanned and saved in a nonsystematic manner to server folders Which of the following would be an appropriate consequence for the internal auditor to include in the documented observation?

Q228. According to the Standards, which of the following is applicable to the internal audit activity’s quality assurance and improvement program?

Q229. Which of the following has the greatest effect on the efficiency of an audit?

Q230. The chief audit executive (CAE) should determine whether the internal audit activity has confirmed the status of all of management’s corrective actions Doing so would help the CAE assess which of the following?

Q231. What type of audit engagement would be the most appropriate to determine how an organization could be more profitable in the long term?

Q232. An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?

Q233. Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?

Q234. Which of the following actions are appropriate for the chief audit executive to perform when identifying audit resource requirements?
1. Consider employees from other operational areas as audit resources, to provide additional audit coverage in the organization.
2. Approach an external service provider to conduct internal audits on certain areas of the organization, due to a lack of skills in the organization.
3. Suggest to the audit committee that an audit of technology be deferred until staff can be trained, due to limited IT audit skills among the audit staff.
4. Communicate to senior management a summary report on the status and adequacy of audit resources.

Q235. In reviewing the appropriateness of the minimum quantity level of inventory established by a department, an auditor would be least likely to consider: