Q184. Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?

Q185. The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

Q186. If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

Q187. Why should internal auditors develop a strong relationship with the external auditors?

Q188. Which of the following types of contracts would provide the least incentive for a contractor to achieve economy and efficiency?

Q189. Which of the following factors is least essential to a successful control self-assessment workshop?

Q190. During a systems development audit, software developers indicated that all programs were moved from the development environment to the production environment and then tested in the production environment. What should the auditor recommend?
I. Implement a test environment to ensure that testing is not performed in the production environment.
II. Require developers to move modified programs from the development environment to the test environment and from the test environment to the production environment.
III. Eliminate access by developers to the production environment.

Q191. According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

Q192. Which of the following is an effective approach for internal auditors to take to improve collaboration with audit clients during an engagement?
1.Obtain control concerns from the client before the audit begins so the internal auditor can tailor the scope accordingly.
2.Discuss the engagement plan with the client so the client can understand the reasoning behind the approach.
3.Review test criteria and procedures where the client expresses concerns about the type of tests to be conducted.
4.Provide all observations at the end of the audit to ensure the client is in agreement with the facts before publishing the report.

Q193. Which of the following situations justifies the release of an interim report to management and the board?
– The internal auditor is convinced that the audit observations require immediate attention. – The internal auditor would like to communicate a change in engagement scope for the activity under review. – The internal auditor notes that the engagement may extend over a longer time period. – The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.

Q194. The scope of a business process review primarily involves:

Q195. Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture?
I. Facilitated meeting
II. Survey
III.
Management-produced analysis

Q196. An organization has adopted an enterprise-wide risk management process and has appointed a chief risk officer (CRO) to manage the process. The board has requested that the audit committee have oversight over the risk management function. Which of the following statements is not true regarding this situation?

Q197. What would be used to determine the collectability of accounts receivable balances?

Q198. Which of the following is the best approach for obtaining feedback from engagement clients regarding the quality of internal audit work?

Q199. Which of the following would provide the greatest assurance of the accuracy of a computer program’s computation of freight charges for catalog sales?

Q200. An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
“A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.”
The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor’s workpaper?

Q201. Which of the following statements is not true about the oversight and review of working papers by the chief audit executive (CAE)?

Q202. An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?
I.
Validate the completeness of the accounts payable files.
II.
Examine the sample of vouchers in greater detail.
III.
Increase the number of vouchers in the sample.
IV.
Broaden the scope of the examination to include credits received by accounts payable.

Q203. A recent survey indicated that residents of a small town take the train to a nearby city eight times per month, on average. The same survey showed that the number of train trips that a resident takes per month (y) is determined by the number of days per month that the resident works in the nearby city (x), according to the equation: y = 2 + 2x. A person who never works in the nearby city is expected to take the train:

Q204. An internal control questionnaire would be most appropriate in which of the following situations?

Q205. An internal auditor is reviewing purchases made through the organization’s corporate credit card program. Which of the following statements best describes a root cause of a deficiency?