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NEW QUESTION 39
When auditing an organization's cash-handling activates which of the following is the most reliable form of testimonial evidence an internal auditor can obtain?
- A. Testimony from me cashier's supervisor who knows how processes should be performed
- B. Testimony from a knowledgeable person who is independent of the cashiering duly
- C. Testimony from the cashier who performs the processes being reviewed
- D. Testimony from a manager who oversees ail cashiering activities being reviewed
Answer: B
NEW QUESTION 40
A post-audit questionnaire sent to audit clients is an effective mechanism for:
- A. Validating process flow.
- B. Improving future audit engagements.
- C. Substantiating audit observations.
- D. Promoting the internal audit activity.
Answer: B
NEW QUESTION 41
Which of the following actions has the least influence on the chief audit executive's development of an audit plan?
- A. Input from senior management and the board.
- B. An evaluation of the complexity of each audit engagement.
- C. Changes in the organizations structure or budget.
- D. An assessment of risk and exposures affecting the organization.
Answer: B
NEW QUESTION 42
Which of the following might alert an auditor to the possibility of fraud in a division?
I. The division is not scheduled for an external audit this year.
II. Sales have increased by 10 percent.
III. A significant portion of management's compensation is directly tied to reported net income of the division.
- A. I and II only
- B. I only
- C. III only
- D. I, II, and III
Answer: C
NEW QUESTION 43
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