Question 1

Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

Options :

A : Vendor fuel invoices that have been reconciled to inventory records.

B : Time cards completed by aircraft cleaning and fueling crews.

C : Observation of selected aircraft while they are being refueled and cleaned.

D : Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.

Answer: C

Question 2

A manufacturing organization receives all direct materials for finished goods production. Which of the following is the strongest preventive control for lapses in quality assurance?

Options :

A : Identifying and rejecting completed products that are not up to quality and standard specifications.

B : Electronically measuring the materials and components according to specifications prior to manufacturing.

C : Examining partially assembled finished products to ensure that the manufacturing process is working correctly.

D : Manually inspecting received supplier materials to ensure appropriate quantities and quality.

Answer: D

Question 3

Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

Options :

A : The risk of collusion between parties.

B : The risk of falsified reconciliations.

C : The risk of low-liquidity inventory.

Answer: B

Question 4

Which of the following is a component of the internal audit value proposition endorsed by IIA guidance?

Options :

A : Insight

B : Independence

C : Integrity

D : Competency

Answer: A

Question 5

Which of the following is not a benefit of using information technology in solving audit problems?

Options :

A : It helps reduce audit risk.

B : It improves the timeliness of the audit engagement

C : It increases audit opportunities.

D : It improves the auditor-s judgment.

Answer: D

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