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NEW QUESTION 44
The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?

A. Review notes of questions that arise during the review process must be retained.B. Workpapers may be amended during the review process.C. Dating and initialing each workpaper provides evidence of review.D. Workpaper review allows for staff training and development.

Answer: A

 

NEW QUESTION 45
A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

A. She may participate, but she must be supervised by the auditor in charge.B. She may participate, but only after she has completed one year with the IAA.C. She may participate for training purposes, to build her knowledge of the IAA.D. She may participate, because she did not previously work in the Human Resources Department.

Answer: D

 

NEW QUESTION 46
Which of the following controls is not appropriate for sales in a manufacturing organization?

A. Customers' orders are recorded promptly.B. Goods shipped are matched with valid customer orders.C. Goods returned are inspected for damage by the receiving department for proper disposition.D. Sales department approval is required for credit sales transactions.

Answer: D

 

NEW QUESTION 47
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

A. The audit committee and senior management.B. Senior management and the external auditors.C. The audit committee and the external auditors.D. Senior management and management of the audited area.

Answer: A

 

NEW QUESTION 48
When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.

A. 2 and 3 onlyB. 3 and 4 onlyC. 1 and 4 onlyD. 1 and 2 only

Answer: A

 

NEW QUESTION 49
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