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Qualified Internal Auditor

Last Update Nov 21, 2024
Total Questions : 80

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Qualified Internal Auditor Questions and Answers

Questions 1

The following are potential sources of evidence regarding the effectiveness of the division's total quality management program. Assume that, all comparisons are for similar time periods and duration and current items are compared with similar items before the implementation of the total quality management program.

The least persuasive evidence would be a comparison of

Options:

A.

Employee morale over the two time periods.

B.

Scrap and rework costs over the two time periods.

C.

Customer returns over the two time periods.

D.

Manufacturing and distribution costs per unit over the two time periods.

Questions 2

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division.

The use of an analytical review as a verification technique would not be a preferred approach if

Options:

A.

The auditor notes strong indicators of a specific fraud involving this account.

B.

The company has relatively stable operations that have not changed much over the past year.

C.

The auditor would like to identify large, unusual, or nonrecurring transactions during the year.

D.

The operating expenses vary in relation to other operating expenses, but not in relation to revenue.

Questions 3

Which of the following documents would provide the most persuasive evidence concerning the existence and valuation of a receivable?

Options:

A.

A credit approval document supported by the customer's audited financial statements.

B.

A copy of a sales invoice to the customer in the auditee's records.

C.

A positive confirmation received directly from the customer.

D.

A customer's purchase order in the auditee's records related to the credit sale.

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