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NEW QUESTION 48
Which of the following best defines an audit opinion?
- A. A conclusion which must be included in the audit report.
- B. A recommendation for corrective action.
- C. An auditor's evaluation of the effects of the observations and recommendations on the activities reviewed.
- D. A summary of the significant audit observations and recommendations.
Answer: C
NEW QUESTION 49
Which of the following has the greatest effect on the efficiency of an audit?
- A. The method and amount of supporting detail used for the audit report.
- B. The complexity of deficiency findings.
- C. The organization and content of workpapers.
- D. The adequacy of preliminary survey information.
Answer: D
NEW QUESTION 50
An internal auditor is conducting tests to determine if an organization is in compliance with its payment approval policies. After reviewing a sample of vouchers selected, the internal auditor concluded that there were indicators of fraud. Which of the following would be the most appropriate method to expand the audit test to achieve the audit objective?
I. Validate the completeness of the accounts payable files.
II. Examine the sample of vouchers in greater detail.
III. Increase the number of vouchers in the sample.
IV. Broaden the scope of the examination to include credits received by accounts payable.
- A. II and III only
- B. I, II, and IV only
- C. I, III, and IV only
- D. I and II only
Answer: A
NEW QUESTION 51
In performance auditing, which of the following must first be determined by the internal auditor?
- A. Whether management controls are appropriate.
- B. Which key performance indicators are in use.
- C. Determination that appropriate benchmarks are in place.
- D. Management's objectives for the process.
Answer: D
Explanation:
Section: Volume D
NEW QUESTION 52
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