Which of the following is not an argument for principles-based approach to corporate governance?
During an audit of sales representatives’ travel expenses, it was discovered that 152 of 200 travel advances issued to sales representatives in the past year exceeded the prescribed maximum amount allowed.
Which of the following statements is a justifiable audit opinion?
During the audit of inventories, an internal auditor specified a precision of 5% instead of the 4% contained in the preliminary audit program.
What would be the impact of the change in precision?
Which of the following is not a stage of risk management process?
A Qualified Internal Auditor directs the audit function for a large city and is planning the audit schedule for the next year. The city has a number of different funds, some that are restricted in use by government grants and some that require compliance reports to the government. One of the programs for which the city has received a grant is job retraining and placement. The grant specifies certain conditions a participant in the program must meet in order to be eligible for the funding.
The auditor must determine the applicable laws and regulations.
Which of the following procedures would be the least effective in learning about the applicable laws and regulations?
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
Which of the following is the best source for an audit team to use to identify common risks faced by a company?
When making a presentation to management, the auditor wants to report findings and to stimulate action.
These objectives are best accomplished by
The requirements for staffing level, education and training, and audit research should be included in
Which of the following is not a component of audit risk?
An audit team has been assigned to review ‘the customer satisfaction measurement system’ that the industrial products division implemented two years ago. This system consists of the division's customer service office conducting an annual mail survey. A survey is sent to 100 purchasing departments randomly selected from all customers who made purchases in the prior 12 months. The survey is three pages long and its 30 questions use a mixture of response modes (e.g., some questions are open-ended, some multiple choice, and others use a response scale). The customer service office mails the survey in September and tabulates the results for questionnaires returned by October 15. Only one mail is sent. If the customer does not return the questionnaire, no follow-up is conducted. When the survey was last conducted, 45 of the questionnaires were not returned.
Which of the following is not an advantage of face-to-face interviews over mail surveys?
Computer fraud is discouraged by