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NEW QUESTION 28
Which of the following files, when compared with billing records, would provide the best source of information for determining if all goods shipped are billed to customers?

A. Pre-numbered shipping documents.B. Pre-numbered customer invoices.C. Accounts receivable transactions.D. Customer purchase orders.

Answer: A

Explanation:
Section: Volume A

 

NEW QUESTION 29
During an audit of a contract for computer security, a governmental auditor finds that a contractor has developed a system that could be the most advanced in the industry. If it seems that the contractor is charging the government for developmental cost of a system that might be sold to other organizations, what is the auditor's best course of action?

A. Exclude the observation from the engagement final communication because the contract was vague and the level of security is clearly acceptable.B. Estimate the added cost, report it to management, and suggest that management meet with its lawyers and the contractor to resolve differences.C. Estimate the cost to develop the advanced security system and inform the contractor that it will be a disallowed cost.D. Compare the cost of the security program with previous costs incurred by governmental operations and inform the contractor that the difference will be a disallowed cost.

Answer: B

 

NEW QUESTION 30
When setting the scope for the identification and assessment of key risks and controls in a process, which of the following would be the least appropriate approach?

A. Specify that the auditors need to assess only key controls, but may include an assessment of non-key controls if there is value to the business in providing such assurance.B. Develop the scope of the audit based on a bottom-up perspective to ensure that all business objectives are considered.C. Ensure the audit includes an assessment of manual and automated controls to determine whether business risks are effectively managed.D. Develop the scope of the audit to include controls that are necessary to manage risk associated with a critical business objective.

Answer: B

 

NEW QUESTION 31
The chief audit executive (CAE) of a small internal audit activity (IAA) plans to test conformance with the Standards through a quality assurance review. According to the Standards, which of the following are acceptable practice for this review?
1.Use an external service provider.
2.Conduct a self-assessment with independent validation.
3.Arrange for a review by qualified employees outside of the IAA.
4.Arrange for reciprocal peer review with another CAE.

A. 1, 2, and 3B. 2 and 4C. 2, 3, and 4D. 1 and 2

Answer: D

 

NEW QUESTION 32
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