Question 1

In promoting quality assurance and improvement of the internal audit activity, which of the following would be considered a component of ongoing assessment?I. Supervision.II. Feedback from audit customers.III. Analysis of performance measures.IV. Comparison of budgeted to actual audit hours.

Options :

A : I and III only.

B : I, III, and IV only.

C : I, II, III, and IV.

D : II and IV only.

Answer: C

Question 2

Reliable evidence is best defined as evidence that

Options :

A : Is the best attainable.

B : Proves an intermediate fact, or group of facts, from which still other facts can be inferred.

C : Is supplementary to other evidence already gathered and tends to strengthen or confirm it.

D : Is obtained by observing people, property, and events.

Answer: A

Question 3

The auditor in charge has just been informed of the next audit assignment and the assigned audit team.Select the appropriate phase for finalizing the audit time budget.

Options :

A : a) During formulation of the long-range plan.

B : d) After the completion of all fieldwork.

C : b) After the preliminary survey.

D : c) During the initial planning meeting.

Answer: C

Question 4

The internal auditor wants to understand the actual flow of data regarding cash processing. The most convincing information is obtained by

Options :

A : Reviewing the programming flowchart for information about control procedures placed into the computer programs.

B : Reviewing the systems flowchart.

C : Performing a walk-through of the processing and obtaining copies of all documents used.

D : Interviewing the chief financial officer.

Answer: C

Question 5

Which of the following is a purpose of an embedded audit module?

Options :

A : It enables continuous monitoring of transaction processing.

B : It identifies program code that may have been inserted for unauthorized purposes.

C : It verifies the correctness of account balances on a master file.

Answer: A

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