Free IQN QIA Practice Test & Real Exam Questions
Reporting to senior management and the board is an important part of the auditor's obligation.
Which of the following items is not required to be reported to senior management and/or the board?
Which of the following items is not required to be reported to senior management and/or the board?
Correct Answer: D
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An operational audit is being performed to evaluate the productivity of telephone sales representatives relative to last year. Theorganizationsells two similar products, one of which is priced 20% higher than the other. Prices did not change during the two years subject to the audit, and the gross profit percentage is the same for both products. The sales representatives are paid a base salary plus a commission.
Which one of the following items represents the best evidence that theorganization'ssales representatives are more productive this year than last year?
Which one of the following items represents the best evidence that theorganization'ssales representatives are more productive this year than last year?
Correct Answer: B
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A company with 14,344 customers determines that the mean and median accounts receivable balances for the year are $15,412 and $10,382, respectively.
From this information, the auditor can conclude that the distribution of the accounts receivable balances is continuous and
From this information, the auditor can conclude that the distribution of the accounts receivable balances is continuous and
Correct Answer: C
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An audit of accounts payable was made to determine if the error rate was within the stated policy of 0.5%. One hundred of the 10,000 accounts payable transactions were randomly selected using a 95% confidence level. No errors were found.
With 95% certainty, one can conclude that the sample results
With 95% certainty, one can conclude that the sample results
Correct Answer: A
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Working papers serve the following purpose for the internal auditor:
Correct Answer: B
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The internal auditors of a financial institution are auditing the institution's investing and lending activities. During the last year, the institution has adopted new policies and procedures for monitoring investments and the loan portfolio. The auditors know that the organisation has invested in new types of financial instruments during the year and is heavily involved in the use of financial derivatives to appropriately hedge risks
The audit committee has expressed concern that the financial institution has been taking on higher-risk loans in pursuit of short term profit goals.
Which of the following audit procedures would provide the least amount of information to address this audit concern?
The audit committee has expressed concern that the financial institution has been taking on higher-risk loans in pursuit of short term profit goals.
Which of the following audit procedures would provide the least amount of information to address this audit concern?
Correct Answer: D
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A personnel department is responsible for processing placement agency fees for new hires. A recruiter established some bogus placement agencies and, when interviewing walk-in applicants, the recruiter would list one of the bogus agencies as referring the candidate.
A possible means of detection or deterrence is to
A possible means of detection or deterrence is to
Correct Answer: A
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One concern of a user of a computer service centre is that one firm's transactions may accidentally be used in the process of updating a second firm's master files. The control procedure that would best provide assurance of the integrity of the master files during updating processes is a check for
Correct Answer: A
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