{"id":31030,"date":"2021-11-08T07:47:07","date_gmt":"2021-11-08T07:47:07","guid":{"rendered":"https:\/\/www.dumpsbase.com\/freedumps\/?p=31030"},"modified":"2021-11-08T07:47:10","modified_gmt":"2021-11-08T07:47:10","slug":"cia-exam-part-2-practice-of-internal-auditing-iia-cia-part2-dumps-questions","status":"publish","type":"post","link":"https:\/\/www.dumpsbase.com\/freedumps\/cia-exam-part-2-practice-of-internal-auditing-iia-cia-part2-dumps-questions.html","title":{"rendered":"CIA Exam Part 2 Practice of Internal Auditing IIA-CIA-Part2 Dumps Questions"},"content":{"rendered":"\n<p>IIA-CIA-Part2 CIA Exam Part Two: Practice of Internal Auditing certification exam is one of the part of IIA CIA certification exams, which tests the knowledge, skills, and abilities particularly related to Performance Standards (series 2000, 2200, 2300, 2400, 2500, and 2600) and current internal audit practices.\u200b When preparing for IIA-CIA-Part2 exam, candidates can come to DumpsBase to choose the perfect IIA-CIA-Part2 dumps as the great online learning materials. All the practice exam questions and answers in DumpsBase CIA Exam Part 2 Practice of Internal Auditing IIA-CIA-Part2 Dumps Questions are accurate, we ensure that you can pass IIA-CIA-Part2 exam successfully.<\/p>\n<h2>Check IIA Certification <span style=\"background-color: #ff0000;\">IIA-CIA-Part2 Free Dumps<\/span> Before Getting The Perfect Dumps<\/h2>\n<script>\n\t  window.fbAsyncInit = function() {\n\t    FB.init({\n\t      appId            : '622169541470367',\n\t      autoLogAppEvents : true,\n\t      xfbml            : true,\n\t      version          : 'v3.1'\n\t    });\n\t  };\n\t\n\t  (function(d, s, id){\n\t     var js, fjs = d.getElementsByTagName(s)[0];\n\t     if (d.getElementById(id)) {return;}\n\t     js = d.createElement(s); js.id = id;\n\t     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n\t     fjs.parentNode.insertBefore(js, fjs);\n\t   }(document, 'script', 'facebook-jssdk'));\n\t<\/script><script type=\"text\/javascript\" >\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \nif(!window.jQuery) alert(\"The important jQuery library is not properly loaded in your site. Your WordPress theme is probably missing the essential wp_head() call. You can switch to another theme and you will see that the plugin works fine and this notice disappears. If you are still not sure what to do you can contact us for help.\");\n});\n<\/script>  \n  \n<div  id=\"watupro_quiz\" class=\"quiz-area single-page-quiz\">\n<p id=\"submittingExam5832\" style=\"display:none;text-align:center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\"><\/p>\n\n<div class=\"watupro-exam-description\" id=\"description-quiz-5832\"><\/div>\n\n<form action=\"\" method=\"post\" class=\"quiz-form\" id=\"quiz-5832\"  enctype=\"multipart\/form-data\" >\n<div class='watu-question ' id='question-1' style=';'><div id='questionWrap-1'  class='   watupro-question-id-197505'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>1. <\/span>An internal auditor provided the following statement about division A's performance during the month: &quot;Because supplies of raw material X were scarce, division A's profits declined by 15 percent.&quot; <br \/>\r<br>Which of the following can be validly concluded from the auditor's statement? <br \/>\r<br>I. Division A's production level declined by 15 percent. <br \/>\r<br>II. Division A could have sold more products than it produced. <br \/>\r<br>III. Division A usually sells all of the products that it produces.<\/div><input type='hidden' name='question_id[]' id='qID_1' value='197505' \/><input type='hidden' id='answerType197505' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197505[]' id='answer-id-792066' class='answer   answerof-197505 ' value='792066'   \/><label for='answer-id-792066' id='answer-label-792066' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197505[]' id='answer-id-792067' class='answer   answerof-197505 ' value='792067'   \/><label for='answer-id-792067' id='answer-label-792067' class=' answer'><span>II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197505[]' id='answer-id-792068' class='answer   answerof-197505 ' value='792068'   \/><label for='answer-id-792068' id='answer-label-792068' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197505[]' id='answer-id-792069' class='answer   answerof-197505 ' value='792069'   \/><label for='answer-id-792069' id='answer-label-792069' class=' answer'><span>I and II only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-2' style=';'><div id='questionWrap-2'  class='   watupro-question-id-197506'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>2. <\/span>An internal auditor is reviewing a new automated human resources system. The system contains a table of pay rates which are matched to the employee job classifications. <br \/>\r<br>The best control to ensure that the table is updated correctly for only valid pay changes would be to:<\/div><input type='hidden' name='question_id[]' id='qID_2' value='197506' \/><input type='hidden' id='answerType197506' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197506[]' id='answer-id-792070' class='answer   answerof-197506 ' value='792070'   \/><label for='answer-id-792070' id='answer-label-792070' class=' answer'><span>Limit access to the data table to management and line supervisors who have the authority to determine pay rates.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197506[]' id='answer-id-792071' class='answer   answerof-197506 ' value='792071'   \/><label for='answer-id-792071' id='answer-label-792071' class=' answer'><span>Require a supervisor in the department, who does not have the ability to change the table, to compare the changes to a signed management authorization.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197506[]' id='answer-id-792072' class='answer   answerof-197506 ' value='792072'   \/><label for='answer-id-792072' id='answer-label-792072' class=' answer'><span>Ensure that adequate edit and reasonableness checks are built into the automated system.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197506[]' id='answer-id-792073' class='answer   answerof-197506 ' value='792073'   \/><label for='answer-id-792073' id='answer-label-792073' class=' answer'><span>Require that all pay changes be signed by the employee to verify that the change goes to a bona fide employee.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-3' style=';'><div id='questionWrap-3'  class='   watupro-question-id-197507'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>3. <\/span>Given the scarcity of internal audit resources, a chief audit executive (CAE) decided not to schedule a follow-up of audit recommendations when developing engagement work schedules. <br \/>\r<br>Does the CAE\u2019s decision violate the Standards?<\/div><input type='hidden' name='question_id[]' id='qID_3' value='197507' \/><input type='hidden' id='answerType197507' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197507[]' id='answer-id-792074' class='answer   answerof-197507 ' value='792074'   \/><label for='answer-id-792074' id='answer-label-792074' class=' answer'><span>No, because the Standards do not specify whether follow-up is needed.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197507[]' id='answer-id-792075' class='answer   answerof-197507 ' value='792075'   \/><label for='answer-id-792075' id='answer-label-792075' class=' answer'><span>No, because when there is evidence of sufficient motivation by the client, there is no need for follow-up action.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197507[]' id='answer-id-792076' class='answer   answerof-197507 ' value='792076'   \/><label for='answer-id-792076' id='answer-label-792076' class=' answer'><span>Yes, because scarcity of resources is not a sufficient reason to omit follow-up action.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197507[]' id='answer-id-792077' class='answer   answerof-197507 ' value='792077'   \/><label for='answer-id-792077' id='answer-label-792077' class=' answer'><span>Yes, because the Standards require the auditors to determine whether the client has appropriately implemented all of the auditor's recommendations.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-4' style=';'><div id='questionWrap-4'  class='   watupro-question-id-197508'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>4. <\/span>Monetary-unit sampling is most useful when the internal auditor:<\/div><input type='hidden' name='question_id[]' id='qID_4' value='197508' \/><input type='hidden' id='answerType197508' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197508[]' id='answer-id-792078' class='answer   answerof-197508 ' value='792078'   \/><label for='answer-id-792078' id='answer-label-792078' class=' answer'><span>Is testing the accounts payable balance.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197508[]' id='answer-id-792079' class='answer   answerof-197508 ' value='792079'   \/><label for='answer-id-792079' id='answer-label-792079' class=' answer'><span>Cannot cumulatively arrange the population items.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197508[]' id='answer-id-792080' class='answer   answerof-197508 ' value='792080'   \/><label for='answer-id-792080' id='answer-label-792080' class=' answer'><span>Expects to find several material errors in the sample.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197508[]' id='answer-id-792081' class='answer   answerof-197508 ' value='792081'   \/><label for='answer-id-792081' id='answer-label-792081' class=' answer'><span>Is concerned with overstatements.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-5' style=';'><div id='questionWrap-5'  class='   watupro-question-id-197509'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>5. <\/span>If an auditor expects to find numerous discrepancies between recorded values and audited values of sample selections, which sampling technique would be most appropriate?<\/div><input type='hidden' name='question_id[]' id='qID_5' value='197509' \/><input type='hidden' id='answerType197509' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197509[]' id='answer-id-792082' class='answer   answerof-197509 ' value='792082'   \/><label for='answer-id-792082' id='answer-label-792082' class=' answer'><span>Attributes sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197509[]' id='answer-id-792083' class='answer   answerof-197509 ' value='792083'   \/><label for='answer-id-792083' id='answer-label-792083' class=' answer'><span>Probability-proportional-to-size sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197509[]' id='answer-id-792084' class='answer   answerof-197509 ' value='792084'   \/><label for='answer-id-792084' id='answer-label-792084' class=' answer'><span>Difference estimation sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197509[]' id='answer-id-792085' class='answer   answerof-197509 ' value='792085'   \/><label for='answer-id-792085' id='answer-label-792085' class=' answer'><span>Discovery sampling.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-6' style=';'><div id='questionWrap-6'  class='   watupro-question-id-197510'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>6. <\/span>According to the International Professional Practices Framework, which of the following statements is correct regarding the communication of audit results? <br \/>\r<br>I. Summary reports may be issued separately from or in conjunction with the final report. <br \/>\r<br>II. Interim reports may be written or oral. <br \/>\r<br>III. Detailed reports should always be issued to the audit committee. <br \/>\r<br>IV. Interim reports should be used to communicate information which requires immediate attention.<\/div><input type='hidden' name='question_id[]' id='qID_6' value='197510' \/><input type='hidden' id='answerType197510' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197510[]' id='answer-id-792086' class='answer   answerof-197510 ' value='792086'   \/><label for='answer-id-792086' id='answer-label-792086' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197510[]' id='answer-id-792087' class='answer   answerof-197510 ' value='792087'   \/><label for='answer-id-792087' id='answer-label-792087' class=' answer'><span>II and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197510[]' id='answer-id-792088' class='answer   answerof-197510 ' value='792088'   \/><label for='answer-id-792088' id='answer-label-792088' class=' answer'><span>I, II, and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197510[]' id='answer-id-792089' class='answer   answerof-197510 ' value='792089'   \/><label for='answer-id-792089' id='answer-label-792089' class=' answer'><span>I, II, III, and I<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-7' style=';'><div id='questionWrap-7'  class='   watupro-question-id-197511'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>7. <\/span>Which of the following factors would increase the confidence level in a variables sampling plan? <br \/>\r<br>I. A larger sample size. <br \/>\r<br>II. A stratified sample. <br \/>\r<br>III. A larger standard deviation.<\/div><input type='hidden' name='question_id[]' id='qID_7' value='197511' \/><input type='hidden' id='answerType197511' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197511[]' id='answer-id-792090' class='answer   answerof-197511 ' value='792090'   \/><label for='answer-id-792090' id='answer-label-792090' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197511[]' id='answer-id-792091' class='answer   answerof-197511 ' value='792091'   \/><label for='answer-id-792091' id='answer-label-792091' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197511[]' id='answer-id-792092' class='answer   answerof-197511 ' value='792092'   \/><label for='answer-id-792092' id='answer-label-792092' class=' answer'><span>II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197511[]' id='answer-id-792093' class='answer   answerof-197511 ' value='792093'   \/><label for='answer-id-792093' id='answer-label-792093' class=' answer'><span>I, II, and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-8' style=';'><div id='questionWrap-8'  class='   watupro-question-id-197512'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>8. <\/span>Which of the following might alert an auditor to the possibility of fraud in a division? <br \/>\r<br>I. The division is not scheduled for an external audit this year. <br \/>\r<br>II. Sales have increased by 10 percent. <br \/>\r<br>III. A significant portion of management's compensation is directly tied to reported net income of the division.<\/div><input type='hidden' name='question_id[]' id='qID_8' value='197512' \/><input type='hidden' id='answerType197512' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197512[]' id='answer-id-792094' class='answer   answerof-197512 ' value='792094'   \/><label for='answer-id-792094' id='answer-label-792094' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197512[]' id='answer-id-792095' class='answer   answerof-197512 ' value='792095'   \/><label for='answer-id-792095' id='answer-label-792095' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197512[]' id='answer-id-792096' class='answer   answerof-197512 ' value='792096'   \/><label for='answer-id-792096' id='answer-label-792096' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197512[]' id='answer-id-792097' class='answer   answerof-197512 ' value='792097'   \/><label for='answer-id-792097' id='answer-label-792097' class=' answer'><span>I, II, and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-9' style=';'><div id='questionWrap-9'  class='   watupro-question-id-197513'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>9. <\/span>An organization's internal auditors are reviewing production costs at a gas-powered electrical generating plant. They identify a serious problem with the accuracy of carbon dioxide emissions reported to the environmental regulatory agency, due to computer errors. <br \/>\r<br>The auditors should immediately report the concern to:<\/div><input type='hidden' name='question_id[]' id='qID_9' value='197513' \/><input type='hidden' id='answerType197513' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197513[]' id='answer-id-792098' class='answer   answerof-197513 ' value='792098'   \/><label for='answer-id-792098' id='answer-label-792098' class=' answer'><span>The regulatory agency.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197513[]' id='answer-id-792099' class='answer   answerof-197513 ' value='792099'   \/><label for='answer-id-792099' id='answer-label-792099' class=' answer'><span>Plant management.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197513[]' id='answer-id-792100' class='answer   answerof-197513 ' value='792100'   \/><label for='answer-id-792100' id='answer-label-792100' class=' answer'><span>A plant health and safety officer.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197513[]' id='answer-id-792101' class='answer   answerof-197513 ' value='792101'   \/><label for='answer-id-792101' id='answer-label-792101' class=' answer'><span>The risk management function.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-10' style=';'><div id='questionWrap-10'  class='   watupro-question-id-197514'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>10. <\/span>The following is an excerpt from an audit engagement workpaper: <br \/>\r<br>&#10001; A Company <br \/>\r<br>&#10001; Accounts Receivable <br \/>\r<br>&#10001; Date <br \/>\r<br>Objective. To determine if the computer system is correctly recording all accounts receivable transactions. <br \/>\r<br>Procedures: Judgmental selection of a sample of all accounts receivable balances greater than $50,000 for positive confirmation of balances. <br \/>\r<br>Conclusion: Based on the results of testing wherein all but three confirmations were returned, the accounts receivable balance is fairly presented in all material respects. <br \/>\r<br>Which of the following is true regarding the workpaper?<\/div><input type='hidden' name='question_id[]' id='qID_10' value='197514' \/><input type='hidden' id='answerType197514' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197514[]' id='answer-id-792102' class='answer   answerof-197514 ' value='792102'   \/><label for='answer-id-792102' id='answer-label-792102' class=' answer'><span>It is not appropriate to judgmentally select a sample when testing accounts receivable.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197514[]' id='answer-id-792103' class='answer   answerof-197514 ' value='792103'   \/><label for='answer-id-792103' id='answer-label-792103' class=' answer'><span>A conclusion should be reached only for the results of overall testing, not for individual procedures.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197514[]' id='answer-id-792104' class='answer   answerof-197514 ' value='792104'   \/><label for='answer-id-792104' id='answer-label-792104' class=' answer'><span>The audit procedures used are not consistent with the audit objective.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197514[]' id='answer-id-792105' class='answer   answerof-197514 ' value='792105'   \/><label for='answer-id-792105' id='answer-label-792105' class=' answer'><span>The format of the workpaper does not conform to the standard format for workpapers.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-11' style=';'><div id='questionWrap-11'  class='   watupro-question-id-197515'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>11. <\/span>A governmental auditor was assigned to determine reasons why the students in one region scored significantly higher on education evaluation tests than did the students in another region. Previous research showed that there is a direct correlation between public financial support and student results. <br \/>\r<br>Which of the following is most likely to explain the difference in the regional results?<\/div><input type='hidden' name='question_id[]' id='qID_11' value='197515' \/><input type='hidden' id='answerType197515' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197515[]' id='answer-id-792106' class='answer   answerof-197515 ' value='792106'   \/><label for='answer-id-792106' id='answer-label-792106' class=' answer'><span>The more successful region spends 30 percent more money on education than does the other region.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197515[]' id='answer-id-792107' class='answer   answerof-197515 ' value='792107'   \/><label for='answer-id-792107' id='answer-label-792107' class=' answer'><span>A higher percentage of the general tax fund is spent on education in the more successful region than in the other region.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197515[]' id='answer-id-792108' class='answer   answerof-197515 ' value='792108'   \/><label for='answer-id-792108' id='answer-label-792108' class=' answer'><span>The more successful region spends more money per student on education than does the other region.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197515[]' id='answer-id-792109' class='answer   answerof-197515 ' value='792109'   \/><label for='answer-id-792109' id='answer-label-792109' class=' answer'><span>The more successful region has increased educational spending by an average of 10 percent each year for the last three years, whereas the other region's increase averaged only three percent.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-12' style=';'><div id='questionWrap-12'  class='   watupro-question-id-197516'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>12. <\/span>Which of the following is true of engagement recommendations? <br \/>\r<br>I. Specific suggestions for implementation must be included. <br \/>\r<br>II. The internal auditor's observations and conclusions may serve as the basis. <br \/>\r<br>III. Actions to correct existing conditions or improve operations may be included. <br \/>\r<br>IV. Approaches to correcting or enhancing performance may be suggested.<\/div><input type='hidden' name='question_id[]' id='qID_12' value='197516' \/><input type='hidden' id='answerType197516' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197516[]' id='answer-id-792110' class='answer   answerof-197516 ' value='792110'   \/><label for='answer-id-792110' id='answer-label-792110' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197516[]' id='answer-id-792111' class='answer   answerof-197516 ' value='792111'   \/><label for='answer-id-792111' id='answer-label-792111' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197516[]' id='answer-id-792112' class='answer   answerof-197516 ' value='792112'   \/><label for='answer-id-792112' id='answer-label-792112' class=' answer'><span>I, III, and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197516[]' id='answer-id-792113' class='answer   answerof-197516 ' value='792113'   \/><label for='answer-id-792113' id='answer-label-792113' class=' answer'><span>II, III, and IV only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-13' style=';'><div id='questionWrap-13'  class='   watupro-question-id-197517'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>13. <\/span>An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. <br \/>\r<br>What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?<\/div><input type='hidden' name='question_id[]' id='qID_13' value='197517' \/><input type='hidden' id='answerType197517' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197517[]' id='answer-id-792114' class='answer   answerof-197517 ' value='792114'   \/><label for='answer-id-792114' id='answer-label-792114' class=' answer'><span>Confirm accounts receivable.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197517[]' id='answer-id-792115' class='answer   answerof-197517 ' value='792115'   \/><label for='answer-id-792115' id='answer-label-792115' class=' answer'><span>Confirm accounts payable.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197517[]' id='answer-id-792116' class='answer   answerof-197517 ' value='792116'   \/><label for='answer-id-792116' id='answer-label-792116' class=' answer'><span>Review the endorsements and banks of deposit on customers' canceled checks.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197517[]' id='answer-id-792117' class='answer   answerof-197517 ' value='792117'   \/><label for='answer-id-792117' id='answer-label-792117' class=' answer'><span>Flowchart and analyze key controls in the cash receipts process.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-14' style=';'><div id='questionWrap-14'  class='   watupro-question-id-197518'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>14. <\/span>When assessing the risk associated with an activity, an internal auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_14' value='197518' \/><input type='hidden' id='answerType197518' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197518[]' id='answer-id-792118' class='answer   answerof-197518 ' value='792118'   \/><label for='answer-id-792118' id='answer-label-792118' class=' answer'><span>Determine how the risk should best be managed.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197518[]' id='answer-id-792119' class='answer   answerof-197518 ' value='792119'   \/><label for='answer-id-792119' id='answer-label-792119' class=' answer'><span>Provide assurance on the management of the risk.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197518[]' id='answer-id-792120' class='answer   answerof-197518 ' value='792120'   \/><label for='answer-id-792120' id='answer-label-792120' class=' answer'><span>Modify the risk management process based on risk exposures.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197518[]' id='answer-id-792121' class='answer   answerof-197518 ' value='792121'   \/><label for='answer-id-792121' id='answer-label-792121' class=' answer'><span>Design controls to mitigate the identified risks.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-15' style=';'><div id='questionWrap-15'  class='   watupro-question-id-197519'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>15. <\/span>Which of the following processes real-transaction data through auditor-developed test programs?<\/div><input type='hidden' name='question_id[]' id='qID_15' value='197519' \/><input type='hidden' id='answerType197519' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197519[]' id='answer-id-792122' class='answer   answerof-197519 ' value='792122'   \/><label for='answer-id-792122' id='answer-label-792122' class=' answer'><span>Generalized audit software.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197519[]' id='answer-id-792123' class='answer   answerof-197519 ' value='792123'   \/><label for='answer-id-792123' id='answer-label-792123' class=' answer'><span>Tracing.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197519[]' id='answer-id-792124' class='answer   answerof-197519 ' value='792124'   \/><label for='answer-id-792124' id='answer-label-792124' class=' answer'><span>Parallel simul-ation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197519[]' id='answer-id-792125' class='answer   answerof-197519 ' value='792125'   \/><label for='answer-id-792125' id='answer-label-792125' class=' answer'><span>Mapping.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-16' style=';'><div id='questionWrap-16'  class='   watupro-question-id-197520'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>16. <\/span>Which of the following would provide the greatest assurance of the accuracy of a computer program's computation of freight charges for catalog sales?<\/div><input type='hidden' name='question_id[]' id='qID_16' value='197520' \/><input type='hidden' id='answerType197520' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197520[]' id='answer-id-792126' class='answer   answerof-197520 ' value='792126'   \/><label for='answer-id-792126' id='answer-label-792126' class=' answer'><span>Use discovery sampling, selecting transactions from invoices which should have freight charges added to them.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197520[]' id='answer-id-792127' class='answer   answerof-197520 ' value='792127'   \/><label for='answer-id-792127' id='answer-label-792127' class=' answer'><span>Use either test data or parallel simul-ation to test the computer application.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197520[]' id='answer-id-792128' class='answer   answerof-197520 ' value='792128'   \/><label for='answer-id-792128' id='answer-label-792128' class=' answer'><span>Use difference estimation, selecting transactions from invoices which should have freight charges added to them.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197520[]' id='answer-id-792129' class='answer   answerof-197520 ' value='792129'   \/><label for='answer-id-792129' id='answer-label-792129' class=' answer'><span>Use generalized audit software to select a monetary-unit sample of invoices that have been billed to customers.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-17' style=';'><div id='questionWrap-17'  class='   watupro-question-id-197521'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>17. <\/span>A company's policy requires that all customers be treated in a fair and consistent manner. <br \/>\r<br>Which of the following audit procedures would provide the most persuasive evidence that the policy was followed?<\/div><input type='hidden' name='question_id[]' id='qID_17' value='197521' \/><input type='hidden' id='answerType197521' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197521[]' id='answer-id-792130' class='answer   answerof-197521 ' value='792130'   \/><label for='answer-id-792130' id='answer-label-792130' class=' answer'><span>Compare the aging of outstanding receivables due from each customer.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197521[]' id='answer-id-792131' class='answer   answerof-197521 ' value='792131'   \/><label for='answer-id-792131' id='answer-label-792131' class=' answer'><span>Compare credit reports with annual sales for a sample of customers.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197521[]' id='answer-id-792132' class='answer   answerof-197521 ' value='792132'   \/><label for='answer-id-792132' id='answer-label-792132' class=' answer'><span>Compare the ratio of outstanding receivables to the authorized credit limit for each customer.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197521[]' id='answer-id-792133' class='answer   answerof-197521 ' value='792133'   \/><label for='answer-id-792133' id='answer-label-792133' class=' answer'><span>Compare the sales discounts offered to each customer.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-18' style=';'><div id='questionWrap-18'  class='   watupro-question-id-197522'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>18. <\/span>The chief audit executive (CAE) determined that based on management's oral response, the action taken regarding an audit observation was sufficient when weighted against the relative importance of the audit recommendation. <br \/>\r<br>Which of the following is the most appropriate step for the internal auditor to take next?<\/div><input type='hidden' name='question_id[]' id='qID_18' value='197522' \/><input type='hidden' id='answerType197522' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197522[]' id='answer-id-792134' class='answer   answerof-197522 ' value='792134'   \/><label for='answer-id-792134' id='answer-label-792134' class=' answer'><span>Initiate a follow-up audit to ensure that action has really been taken.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197522[]' id='answer-id-792135' class='answer   answerof-197522 ' value='792135'   \/><label for='answer-id-792135' id='answer-label-792135' class=' answer'><span>Follow-up with management until a written response is obtained.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197522[]' id='answer-id-792136' class='answer   answerof-197522 ' value='792136'   \/><label for='answer-id-792136' id='answer-label-792136' class=' answer'><span>Escalate the issue to the board and get their position on the issue.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197522[]' id='answer-id-792137' class='answer   answerof-197522 ' value='792137'   \/><label for='answer-id-792137' id='answer-label-792137' class=' answer'><span>Note in the permanent file that follow-up needs to be performed as part of the next engagement.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-19' style=';'><div id='questionWrap-19'  class='   watupro-question-id-197523'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>19. <\/span>In forming a team to investigate an organization's potential adoption of an activity-based costing system, the best reason to include an internal auditor on the team would be the auditor's knowledge of:<\/div><input type='hidden' name='question_id[]' id='qID_19' value='197523' \/><input type='hidden' id='answerType197523' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197523[]' id='answer-id-792138' class='answer   answerof-197523 ' value='792138'   \/><label for='answer-id-792138' id='answer-label-792138' class=' answer'><span>Activities and cost drivers.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197523[]' id='answer-id-792139' class='answer   answerof-197523 ' value='792139'   \/><label for='answer-id-792139' id='answer-label-792139' class=' answer'><span>Information processing procedures.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197523[]' id='answer-id-792140' class='answer   answerof-197523 ' value='792140'   \/><label for='answer-id-792140' id='answer-label-792140' class=' answer'><span>Current product cost structures.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197523[]' id='answer-id-792141' class='answer   answerof-197523 ' value='792141'   \/><label for='answer-id-792141' id='answer-label-792141' class=' answer'><span>Internal control alternatives.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-20' style=';'><div id='questionWrap-20'  class='   watupro-question-id-197524'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>20. <\/span>In a sampling application, the group of items about which the auditor wants to estimate some characteristic is called the.<\/div><input type='hidden' name='question_id[]' id='qID_20' value='197524' \/><input type='hidden' id='answerType197524' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197524[]' id='answer-id-792142' class='answer   answerof-197524 ' value='792142'   \/><label for='answer-id-792142' id='answer-label-792142' class=' answer'><span>Population.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197524[]' id='answer-id-792143' class='answer   answerof-197524 ' value='792143'   \/><label for='answer-id-792143' id='answer-label-792143' class=' answer'><span>Attribute of interest.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197524[]' id='answer-id-792144' class='answer   answerof-197524 ' value='792144'   \/><label for='answer-id-792144' id='answer-label-792144' class=' answer'><span>Sample.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197524[]' id='answer-id-792145' class='answer   answerof-197524 ' value='792145'   \/><label for='answer-id-792145' id='answer-label-792145' class=' answer'><span>Sampling unit.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-21' style=';'><div id='questionWrap-21'  class='   watupro-question-id-197525'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>21. <\/span>Insurance companies often receive electronic hospitalization claims directly from hospitals. <br \/>\r<br>Which of the following control procedures would be most effective in detecting fraud in such an environment?<\/div><input type='hidden' name='question_id[]' id='qID_21' value='197525' \/><input type='hidden' id='answerType197525' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197525[]' id='answer-id-792146' class='answer   answerof-197525 ' value='792146'   \/><label for='answer-id-792146' id='answer-label-792146' class=' answer'><span>Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197525[]' id='answer-id-792147' class='answer   answerof-197525 ' value='792147'   \/><label for='answer-id-792147' id='answer-label-792147' class=' answer'><span>Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197525[]' id='answer-id-792148' class='answer   answerof-197525 ' value='792148'   \/><label for='answer-id-792148' id='answer-label-792148' class=' answer'><span>Use generalized audit software to match the claimant identification number with a master list of valid policyholders.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197525[]' id='answer-id-792149' class='answer   answerof-197525 ' value='792149'   \/><label for='answer-id-792149' id='answer-label-792149' class=' answer'><span>Develop batch controls over all items received from a particular hospital and process those claims in batches.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-22' style=';'><div id='questionWrap-22'  class='   watupro-question-id-197526'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>22. <\/span>A retail company uses a computer program that matches electronic vendor invoices with the applicable purchase orders and receiving information, which are also maintained electronically. <br \/>\r<br>If an invoice does not match the other items within predefined ranges, a report is generated and sent to the accounts payable department for further investigation. All of the applicable documents are electronically marked, cross-referenced, and retained in open files. Both an integrated test facility and a systems control audit review file (SCARF) have been included in the system. <br \/>\r<br>An auditor wants to determine the extent to which items are not matched at year end and to investigate the potential causes of the unmatched items. <br \/>\r<br>Which of the following audit procedures would be most effective in determining the items to investigate?<\/div><input type='hidden' name='question_id[]' id='qID_22' value='197526' \/><input type='hidden' id='answerType197526' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197526[]' id='answer-id-792150' class='answer   answerof-197526 ' value='792150'   \/><label for='answer-id-792150' id='answer-label-792150' class=' answer'><span>Use generalized audit software to read the electronically marked unmatched items.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197526[]' id='answer-id-792151' class='answer   answerof-197526 ' value='792151'   \/><label for='answer-id-792151' id='answer-label-792151' class=' answer'><span>Use generalized audit software to read the purchase orders and trace to applicable receiving and vendor invoice files.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197526[]' id='answer-id-792152' class='answer   answerof-197526 ' value='792152'   \/><label for='answer-id-792152' id='answer-label-792152' class=' answer'><span>Use the SCARF to identify unusual items. Select an attributes sample and trace to the underlying documentation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197526[]' id='answer-id-792153' class='answer   answerof-197526 ' value='792153'   \/><label for='answer-id-792153' id='answer-label-792153' class=' answer'><span>Submit test data to identify attributes of unmatched items. Follow up by investigating the identified attributes.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-23' style=';'><div id='questionWrap-23'  class='   watupro-question-id-197527'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>23. <\/span>Which of the following data collection strategies systematically tests the effects of various factors on an outcome?<\/div><input type='hidden' name='question_id[]' id='qID_23' value='197527' \/><input type='hidden' id='answerType197527' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197527[]' id='answer-id-792154' class='answer   answerof-197527 ' value='792154'   \/><label for='answer-id-792154' id='answer-label-792154' class=' answer'><span>Content analysis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197527[]' id='answer-id-792155' class='answer   answerof-197527 ' value='792155'   \/><label for='answer-id-792155' id='answer-label-792155' class=' answer'><span>Sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197527[]' id='answer-id-792156' class='answer   answerof-197527 ' value='792156'   \/><label for='answer-id-792156' id='answer-label-792156' class=' answer'><span>Evaluation synthesis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197527[]' id='answer-id-792157' class='answer   answerof-197527 ' value='792157'   \/><label for='answer-id-792157' id='answer-label-792157' class=' answer'><span>Modeling.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-24' style=';'><div id='questionWrap-24'  class='   watupro-question-id-197528'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>24. <\/span>An auditor plans to analyze customer satisfaction, including. (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months. <br \/>\r<br>Which of the following statements regarding this audit approach is correct?<\/div><input type='hidden' name='question_id[]' id='qID_24' value='197528' \/><input type='hidden' id='answerType197528' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197528[]' id='answer-id-792158' class='answer   answerof-197528 ' value='792158'   \/><label for='answer-id-792158' id='answer-label-792158' class=' answer'><span>Although useful, such an analysis does not address any risk factors.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197528[]' id='answer-id-792159' class='answer   answerof-197528 ' value='792159'   \/><label for='answer-id-792159' id='answer-label-792159' class=' answer'><span>The survey would not consider customers who did not make purchases in the last three months.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197528[]' id='answer-id-792160' class='answer   answerof-197528 ' value='792160'   \/><label for='answer-id-792160' id='answer-label-792160' class=' answer'><span>Steps 1 and 2 of the analysis are not necessary or cost-effective if the customer survey is comprehensive.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197528[]' id='answer-id-792161' class='answer   answerof-197528 ' value='792161'   \/><label for='answer-id-792161' id='answer-label-792161' class=' answer'><span>Analysis of three months' activity would not evaluate customer satisfaction.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-25' style=';'><div id='questionWrap-25'  class='   watupro-question-id-197529'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>25. <\/span>In which of the following situations would it be most appropriate to employ the services of a forensic specialist?<\/div><input type='hidden' name='question_id[]' id='qID_25' value='197529' \/><input type='hidden' id='answerType197529' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197529[]' id='answer-id-792162' class='answer   answerof-197529 ' value='792162'   \/><label for='answer-id-792162' id='answer-label-792162' class=' answer'><span>Detection of unauthorized changes to source documents.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197529[]' id='answer-id-792163' class='answer   answerof-197529 ' value='792163'   \/><label for='answer-id-792163' id='answer-label-792163' class=' answer'><span>Review for misapplication of general computer controls over accounts receivable.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197529[]' id='answer-id-792164' class='answer   answerof-197529 ' value='792164'   \/><label for='answer-id-792164' id='answer-label-792164' class=' answer'><span>Investigation of ghost employees in a large business.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197529[]' id='answer-id-792165' class='answer   answerof-197529 ' value='792165'   \/><label for='answer-id-792165' id='answer-label-792165' class=' answer'><span>Verification of fixed assets in a manufacturing company.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-26' style=';'><div id='questionWrap-26'  class='   watupro-question-id-197530'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>26. <\/span>Which of the following would be an appropriate improvement to controls over large quantities of consumable material that are charged to expense when placed in bins which are accessible to production workers?<\/div><input type='hidden' name='question_id[]' id='qID_26' value='197530' \/><input type='hidden' id='answerType197530' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197530[]' id='answer-id-792166' class='answer   answerof-197530 ' value='792166'   \/><label for='answer-id-792166' id='answer-label-792166' class=' answer'><span>Relocate bins to the inventory warehouse.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197530[]' id='answer-id-792167' class='answer   answerof-197530 ' value='792167'   \/><label for='answer-id-792167' id='answer-label-792167' class=' answer'><span>Require management to compare the cost of consumable items used to the budget.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197530[]' id='answer-id-792168' class='answer   answerof-197530 ' value='792168'   \/><label for='answer-id-792168' id='answer-label-792168' class=' answer'><span>Lock the bins during normal working hours.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197530[]' id='answer-id-792169' class='answer   answerof-197530 ' value='792169'   \/><label for='answer-id-792169' id='answer-label-792169' class=' answer'><span>None of the above actions are needed for items of minor cost and size.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-27' style=';'><div id='questionWrap-27'  class='   watupro-question-id-197531'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>27. <\/span>Which of the following situations might allow an employee to steal checks sent to an organization and subsequently cash them?<\/div><input type='hidden' name='question_id[]' id='qID_27' value='197531' \/><input type='hidden' id='answerType197531' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197531[]' id='answer-id-792170' class='answer   answerof-197531 ' value='792170'   \/><label for='answer-id-792170' id='answer-label-792170' class=' answer'><span>Checks are not restrictively endorsed when received.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197531[]' id='answer-id-792171' class='answer   answerof-197531 ' value='792171'   \/><label for='answer-id-792171' id='answer-label-792171' class=' answer'><span>Only one signature is required on the organization's checks.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197531[]' id='answer-id-792172' class='answer   answerof-197531 ' value='792172'   \/><label for='answer-id-792172' id='answer-label-792172' class=' answer'><span>One employee handles both accounts receivable and purchase orders.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197531[]' id='answer-id-792173' class='answer   answerof-197531 ' value='792173'   \/><label for='answer-id-792173' id='answer-label-792173' class=' answer'><span>One employee handles both cash deposits and accounts payable.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-28' style=';'><div id='questionWrap-28'  class='   watupro-question-id-197532'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>28. <\/span>Company A has a formal comprehensive corporate code of ethics while company B does not. <br \/>\r<br>Which of the following statements regarding the existence of the code of ethics in company A can be logically inferred? <br \/>\r<br>I. Company A exhibits a higher standard of ethical behavior than does company B. <br \/>\r<br>II. Company A has established objective criteria by which an employee's actions can be evaluated. <br \/>\r<br>III. The absence of a formal corporate code of ethics in company B would prevent a successful audit of ethical behavior in that company.<\/div><input type='hidden' name='question_id[]' id='qID_28' value='197532' \/><input type='hidden' id='answerType197532' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197532[]' id='answer-id-792174' class='answer   answerof-197532 ' value='792174'   \/><label for='answer-id-792174' id='answer-label-792174' class=' answer'><span>II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197532[]' id='answer-id-792175' class='answer   answerof-197532 ' value='792175'   \/><label for='answer-id-792175' id='answer-label-792175' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197532[]' id='answer-id-792176' class='answer   answerof-197532 ' value='792176'   \/><label for='answer-id-792176' id='answer-label-792176' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197532[]' id='answer-id-792177' class='answer   answerof-197532 ' value='792177'   \/><label for='answer-id-792177' id='answer-label-792177' class=' answer'><span>II and III only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-29' style=';'><div id='questionWrap-29'  class='   watupro-question-id-197533'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>29. <\/span>Many questionnaires are made up of a series of different questions that use the same response categories (for example: strongly agree, agree, neither, disagree, strongly disagree). Some designs will have different groups of respondents answer alternate versions of the questionnaire that present the questions in different orders and reverse the orientation of the endpoints of the scale (for example: agree on the right and disagree on the left). <br \/>\r<br>The purpose of such questionnaire variations is to:<\/div><input type='hidden' name='question_id[]' id='qID_29' value='197533' \/><input type='hidden' id='answerType197533' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197533[]' id='answer-id-792178' class='answer   answerof-197533 ' value='792178'   \/><label for='answer-id-792178' id='answer-label-792178' class=' answer'><span>Eliminate intentional misrepresentations.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197533[]' id='answer-id-792179' class='answer   answerof-197533 ' value='792179'   \/><label for='answer-id-792179' id='answer-label-792179' class=' answer'><span>Reduce the effects of pattern response tendencies.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197533[]' id='answer-id-792180' class='answer   answerof-197533 ' value='792180'   \/><label for='answer-id-792180' id='answer-label-792180' class=' answer'><span>Test whether respondents are reading the questionnaire.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197533[]' id='answer-id-792181' class='answer   answerof-197533 ' value='792181'   \/><label for='answer-id-792181' id='answer-label-792181' class=' answer'><span>Make it possible to get information about more than one population parameter using the same questions.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-30' style=';'><div id='questionWrap-30'  class='   watupro-question-id-197534'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>30. <\/span>During an interview with a manager in a company's claims department, an auditor noted that the manager became nervous and changed the subject whenever the auditor raised questions about certain types of claims. The manager's answers were consistent with company policies and procedures. <br \/>\r<br>When documenting the interview, the auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_30' value='197534' \/><input type='hidden' id='answerType197534' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197534[]' id='answer-id-792182' class='answer   answerof-197534 ' value='792182'   \/><label for='answer-id-792182' id='answer-label-792182' class=' answer'><span>Document the manager's answers, noting the nature of the nonverbal communication.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197534[]' id='answer-id-792183' class='answer   answerof-197534 ' value='792183'   \/><label for='answer-id-792183' id='answer-label-792183' class=' answer'><span>Document the manager's answers but not the nonverbal communication because it is subjective and is not corroborated.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197534[]' id='answer-id-792184' class='answer   answerof-197534 ' value='792184'   \/><label for='answer-id-792184' id='answer-label-792184' class=' answer'><span>Conclude that the nonverbal communication is persuasive and that sufficient evidence exists to begin a fraud investigation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197534[]' id='answer-id-792185' class='answer   answerof-197534 ' value='792185'   \/><label for='answer-id-792185' id='answer-label-792185' class=' answer'><span>Disregard the interview entirely because the verbal and nonverbal communications were contradictory.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-31' style=';'><div id='questionWrap-31'  class='   watupro-question-id-197535'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>31. <\/span>An internal auditor would most likely use attributes sampling when testing which of the following?<\/div><input type='hidden' name='question_id[]' id='qID_31' value='197535' \/><input type='hidden' id='answerType197535' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197535[]' id='answer-id-792186' class='answer   answerof-197535 ' value='792186'   \/><label for='answer-id-792186' id='answer-label-792186' class=' answer'><span>Accounts receivable balances.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197535[]' id='answer-id-792187' class='answer   answerof-197535 ' value='792187'   \/><label for='answer-id-792187' id='answer-label-792187' class=' answer'><span>Correct coding of accounts payable disbursement vouchers.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197535[]' id='answer-id-792188' class='answer   answerof-197535 ' value='792188'   \/><label for='answer-id-792188' id='answer-label-792188' class=' answer'><span>Year-end inventory value.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197535[]' id='answer-id-792189' class='answer   answerof-197535 ' value='792189'   \/><label for='answer-id-792189' id='answer-label-792189' class=' answer'><span>Fixed asset book value.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-32' style=';'><div id='questionWrap-32'  class='   watupro-question-id-197536'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>32. <\/span>An audit of management's quality program includes testing the accuracy of the cost-of-quality reports provided to management. <br \/>\r<br>Which of the following internal control objectives is the focus of this testing?<\/div><input type='hidden' name='question_id[]' id='qID_32' value='197536' \/><input type='hidden' id='answerType197536' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197536[]' id='answer-id-792190' class='answer   answerof-197536 ' value='792190'   \/><label for='answer-id-792190' id='answer-label-792190' class=' answer'><span>To ensure compliance with policies, plans, procedures, laws, and regulations.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197536[]' id='answer-id-792191' class='answer   answerof-197536 ' value='792191'   \/><label for='answer-id-792191' id='answer-label-792191' class=' answer'><span>To ensure the accomplishment of established objectives and goals for operations or programs.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197536[]' id='answer-id-792192' class='answer   answerof-197536 ' value='792192'   \/><label for='answer-id-792192' id='answer-label-792192' class=' answer'><span>To ensure the reliability and integrity of information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197536[]' id='answer-id-792193' class='answer   answerof-197536 ' value='792193'   \/><label for='answer-id-792193' id='answer-label-792193' class=' answer'><span>To ensure the economical and efficient use of resources.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-33' style=';'><div id='questionWrap-33'  class='   watupro-question-id-197537'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>33. <\/span>An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. <br \/>\r<br>What action should the auditor take, considering the outsourcing decision?<\/div><input type='hidden' name='question_id[]' id='qID_33' value='197537' \/><input type='hidden' id='answerType197537' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197537[]' id='answer-id-792194' class='answer   answerof-197537 ' value='792194'   \/><label for='answer-id-792194' id='answer-label-792194' class=' answer'><span>Review the controls over payroll in both the company and the service bureau.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197537[]' id='answer-id-792195' class='answer   answerof-197537 ' value='792195'   \/><label for='answer-id-792195' id='answer-label-792195' class=' answer'><span>Review only the company's controls over data sent to and received from the service bureau.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197537[]' id='answer-id-792196' class='answer   answerof-197537 ' value='792196'   \/><label for='answer-id-792196' id='answer-label-792196' class=' answer'><span>Review only the controls over payments to the service bureau based on the contract.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197537[]' id='answer-id-792197' class='answer   answerof-197537 ' value='792197'   \/><label for='answer-id-792197' id='answer-label-792197' class=' answer'><span>Cancel the engagement because the processing is being performed outside of the organization.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-34' style=';'><div id='questionWrap-34'  class='   watupro-question-id-197538'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>34. <\/span>Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?<\/div><input type='hidden' name='question_id[]' id='qID_34' value='197538' \/><input type='hidden' id='answerType197538' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197538[]' id='answer-id-792198' class='answer   answerof-197538 ' value='792198'   \/><label for='answer-id-792198' id='answer-label-792198' class=' answer'><span>International Accounting Standards require the internal auditor to include audit procedures which would detect fraud if it would cause a material misrepresentation of the financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197538[]' id='answer-id-792199' class='answer   answerof-197538 ' value='792199'   \/><label for='answer-id-792199' id='answer-label-792199' class=' answer'><span>Internal auditors do not have any specific responsibilities with respect to including fraud-related audit procedures.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197538[]' id='answer-id-792200' class='answer   answerof-197538 ' value='792200'   \/><label for='answer-id-792200' id='answer-label-792200' class=' answer'><span>Proper audit procedures, when carried out with due professional care, will guarantee that fraud, if present, will be detected.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197538[]' id='answer-id-792201' class='answer   answerof-197538 ' value='792201'   \/><label for='answer-id-792201' id='answer-label-792201' class=' answer'><span>If significant control weaknesses are detected, additional tests should be directed toward other indicators of fraud.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-35' style=';'><div id='questionWrap-35'  class='   watupro-question-id-197539'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>35. <\/span>Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?<\/div><input type='hidden' name='question_id[]' id='qID_35' value='197539' \/><input type='hidden' id='answerType197539' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197539[]' id='answer-id-792202' class='answer   answerof-197539 ' value='792202'   \/><label for='answer-id-792202' id='answer-label-792202' class=' answer'><span>Vendor fuel invoices that have been reconciled to inventory records.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197539[]' id='answer-id-792203' class='answer   answerof-197539 ' value='792203'   \/><label for='answer-id-792203' id='answer-label-792203' class=' answer'><span>Time cards completed by aircraft cleaning and fueling crews.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197539[]' id='answer-id-792204' class='answer   answerof-197539 ' value='792204'   \/><label for='answer-id-792204' id='answer-label-792204' class=' answer'><span>Observation of selected aircraft while they are being refueled and cleaned.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197539[]' id='answer-id-792205' class='answer   answerof-197539 ' value='792205'   \/><label for='answer-id-792205' id='answer-label-792205' class=' answer'><span>Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-36' style=';'><div id='questionWrap-36'  class='   watupro-question-id-197540'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>36. <\/span>Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?<\/div><input type='hidden' name='question_id[]' id='qID_36' value='197540' \/><input type='hidden' id='answerType197540' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197540[]' id='answer-id-792206' class='answer   answerof-197540 ' value='792206'   \/><label for='answer-id-792206' id='answer-label-792206' class=' answer'><span>The auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197540[]' id='answer-id-792207' class='answer   answerof-197540 ' value='792207'   \/><label for='answer-id-792207' id='answer-label-792207' class=' answer'><span>Conditions that were not specifically considered by the auditor may go untested.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197540[]' id='answer-id-792208' class='answer   answerof-197540 ' value='792208'   \/><label for='answer-id-792208' id='answer-label-792208' class=' answer'><span>The approach requires the creation of &quot;dummy companies,&quot; possibly destroying or altering actual company data in the process.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197540[]' id='answer-id-792209' class='answer   answerof-197540 ' value='792209'   \/><label for='answer-id-792209' id='answer-label-792209' class=' answer'><span>Inclusion of atypical data in the test data may cause errors to be noted on the exception report.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-37' style=';'><div id='questionWrap-37'  class='   watupro-question-id-197541'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>37. <\/span>A code of ethics within the internal auditing profession is necessary in order to:<\/div><input type='hidden' name='question_id[]' id='qID_37' value='197541' \/><input type='hidden' id='answerType197541' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197541[]' id='answer-id-792210' class='answer   answerof-197541 ' value='792210'   \/><label for='answer-id-792210' id='answer-label-792210' class=' answer'><span>Reduce the likelihood that members of the profession will be sued for substandard work.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197541[]' id='answer-id-792211' class='answer   answerof-197541 ' value='792211'   \/><label for='answer-id-792211' id='answer-label-792211' class=' answer'><span>Ensure that all members of the profession perform at approximately the same level of competence.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197541[]' id='answer-id-792212' class='answer   answerof-197541 ' value='792212'   \/><label for='answer-id-792212' id='answer-label-792212' class=' answer'><span>Provide guidance to internal auditors in their service to others.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197541[]' id='answer-id-792213' class='answer   answerof-197541 ' value='792213'   \/><label for='answer-id-792213' id='answer-label-792213' class=' answer'><span>Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-38' style=';'><div id='questionWrap-38'  class='   watupro-question-id-197542'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>38. <\/span>Which of the following is an example of the verification of internal documentary evidence?<\/div><input type='hidden' name='question_id[]' id='qID_38' value='197542' \/><input type='hidden' id='answerType197542' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197542[]' id='answer-id-792214' class='answer   answerof-197542 ' value='792214'   \/><label for='answer-id-792214' id='answer-label-792214' class=' answer'><span>Reviewing a carrier's bill of lading.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197542[]' id='answer-id-792215' class='answer   answerof-197542 ' value='792215'   \/><label for='answer-id-792215' id='answer-label-792215' class=' answer'><span>Reconciling a vendor's month-end statement.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197542[]' id='answer-id-792216' class='answer   answerof-197542 ' value='792216'   \/><label for='answer-id-792216' id='answer-label-792216' class=' answer'><span>Vouching a copy of a sales invoice to receivables.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197542[]' id='answer-id-792217' class='answer   answerof-197542 ' value='792217'   \/><label for='answer-id-792217' id='answer-label-792217' class=' answer'><span>Recalculating a customer's purchase order.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-39' style=';'><div id='questionWrap-39'  class='   watupro-question-id-197543'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>39. <\/span>When internal auditors provide consulting services, the scope of the engagement is primarily determined by:<\/div><input type='hidden' name='question_id[]' id='qID_39' value='197543' \/><input type='hidden' id='answerType197543' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197543[]' id='answer-id-792218' class='answer   answerof-197543 ' value='792218'   \/><label for='answer-id-792218' id='answer-label-792218' class=' answer'><span>Internal auditing standards.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197543[]' id='answer-id-792219' class='answer   answerof-197543 ' value='792219'   \/><label for='answer-id-792219' id='answer-label-792219' class=' answer'><span>The audit engagement team.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197543[]' id='answer-id-792220' class='answer   answerof-197543 ' value='792220'   \/><label for='answer-id-792220' id='answer-label-792220' class=' answer'><span>The engagement client.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197543[]' id='answer-id-792221' class='answer   answerof-197543 ' value='792221'   \/><label for='answer-id-792221' id='answer-label-792221' class=' answer'><span>The internal audit activity's charter.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-40' style=';'><div id='questionWrap-40'  class='   watupro-question-id-197544'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>40. <\/span>During an audit of executive travel, an auditor noted that the president's travel expense reimbursements were approved by an executive secretary who reported to the president. The organization's reimbursement policy requires all travel expense reimbursements to be approved by the traveler's supervisor, but it does not address the president's reimbursements. <br \/>\r<br>Which of the following represents the auditor's best recommendation in this situation?<\/div><input type='hidden' name='question_id[]' id='qID_40' value='197544' \/><input type='hidden' id='answerType197544' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197544[]' id='answer-id-792222' class='answer   answerof-197544 ' value='792222'   \/><label for='answer-id-792222' id='answer-label-792222' class=' answer'><span>The organization's reimbursement policy should be amended to grant the president's executive secretary the authority to approve the president's travel expense reimbursements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197544[]' id='answer-id-792223' class='answer   answerof-197544 ' value='792223'   \/><label for='answer-id-792223' id='answer-label-792223' class=' answer'><span>The approval policy for executive travel should be considered at the next meeting of the audit committee of the board of directors.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197544[]' id='answer-id-792224' class='answer   answerof-197544 ' value='792224'   \/><label for='answer-id-792224' id='answer-label-792224' class=' answer'><span>The president's travel expense reimbursements should be reviewed and approved by the chief financial officer.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197544[]' id='answer-id-792225' class='answer   answerof-197544 ' value='792225'   \/><label for='answer-id-792225' id='answer-label-792225' class=' answer'><span>The president's noncompliance should be considered immaterial.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-41' style=';'><div id='questionWrap-41'  class='   watupro-question-id-197545'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>41. <\/span>Which of the following audit steps would be most effective to review proper recording of and accountability over physical assets? <br \/>\r<br>I. Physically inspect all assets on the organization's property. <br \/>\r<br>II. Select a sample department and physically inspect assets in the department. <br \/>\r<br>III. Select a sample from the organization's records of physical assets and physically locate each asset. <br \/>\r<br>IV. Identify assets at a sample of locations and trace to the organization's records.<\/div><input type='hidden' name='question_id[]' id='qID_41' value='197545' \/><input type='hidden' id='answerType197545' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197545[]' id='answer-id-792226' class='answer   answerof-197545 ' value='792226'   \/><label for='answer-id-792226' id='answer-label-792226' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197545[]' id='answer-id-792227' class='answer   answerof-197545 ' value='792227'   \/><label for='answer-id-792227' id='answer-label-792227' class=' answer'><span>I and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197545[]' id='answer-id-792228' class='answer   answerof-197545 ' value='792228'   \/><label for='answer-id-792228' id='answer-label-792228' class=' answer'><span>II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197545[]' id='answer-id-792229' class='answer   answerof-197545 ' value='792229'   \/><label for='answer-id-792229' id='answer-label-792229' class=' answer'><span>III and IV only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-42' style=';'><div id='questionWrap-42'  class='   watupro-question-id-197546'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>42. <\/span>An auditor analyzed a payroll system's data files for unusual activity, such as excessive overtime hours, unusual fluctuations in pay rates, and excessive vacation time. <br \/>\r<br>The application controls being verified by this analysis are:<\/div><input type='hidden' name='question_id[]' id='qID_42' value='197546' \/><input type='hidden' id='answerType197546' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197546[]' id='answer-id-792230' class='answer   answerof-197546 ' value='792230'   \/><label for='answer-id-792230' id='answer-label-792230' class=' answer'><span>Edit and validation controls.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197546[]' id='answer-id-792231' class='answer   answerof-197546 ' value='792231'   \/><label for='answer-id-792231' id='answer-label-792231' class=' answer'><span>Rejected and suspense item controls.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197546[]' id='answer-id-792232' class='answer   answerof-197546 ' value='792232'   \/><label for='answer-id-792232' id='answer-label-792232' class=' answer'><span>Controls over update access to the database.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197546[]' id='answer-id-792233' class='answer   answerof-197546 ' value='792233'   \/><label for='answer-id-792233' id='answer-label-792233' class=' answer'><span>Programmed balancing controls.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-43' style=';'><div id='questionWrap-43'  class='   watupro-question-id-197547'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>43. <\/span>What would be used to determine the collectability of accounts receivable balances?<\/div><input type='hidden' name='question_id[]' id='qID_43' value='197547' \/><input type='hidden' id='answerType197547' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197547[]' id='answer-id-792234' class='answer   answerof-197547 ' value='792234'   \/><label for='answer-id-792234' id='answer-label-792234' class=' answer'><span>The file of related shipping documents.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197547[]' id='answer-id-792235' class='answer   answerof-197547 ' value='792235'   \/><label for='answer-id-792235' id='answer-label-792235' class=' answer'><span>Negative accounts receivable confirmations.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197547[]' id='answer-id-792236' class='answer   answerof-197547 ' value='792236'   \/><label for='answer-id-792236' id='answer-label-792236' class=' answer'><span>Positive accounts receivable confirmations.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197547[]' id='answer-id-792237' class='answer   answerof-197547 ' value='792237'   \/><label for='answer-id-792237' id='answer-label-792237' class=' answer'><span>An aged accounts receivable listing.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-44' style=';'><div id='questionWrap-44'  class='   watupro-question-id-197548'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>44. <\/span>An internal auditor is discussing an audit problem with an engagement client. <br \/>\r<br>While listening to the client, the internal auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_44' value='197548' \/><input type='hidden' id='answerType197548' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197548[]' id='answer-id-792238' class='answer   answerof-197548 ' value='792238'   \/><label for='answer-id-792238' id='answer-label-792238' class=' answer'><span>Prepare a response to the client.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197548[]' id='answer-id-792239' class='answer   answerof-197548 ' value='792239'   \/><label for='answer-id-792239' id='answer-label-792239' class=' answer'><span>Take mental notes on the speaker's nonverbal communication, as it is more important than what is being said.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197548[]' id='answer-id-792240' class='answer   answerof-197548 ' value='792240'   \/><label for='answer-id-792240' id='answer-label-792240' class=' answer'><span>Make sure that all details, as well as the main ideas of the client, are remembered.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197548[]' id='answer-id-792241' class='answer   answerof-197548 ' value='792241'   \/><label for='answer-id-792241' id='answer-label-792241' class=' answer'><span>Integrate the incoming information from the client with information that is already known.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-45' style=';'><div id='questionWrap-45'  class='   watupro-question-id-197549'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>45. <\/span>If an auditor used nonstatistical sampling instead of statistical sampling to estimate the value of inventory, which of the following would be true?<\/div><input type='hidden' name='question_id[]' id='qID_45' value='197549' \/><input type='hidden' id='answerType197549' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197549[]' id='answer-id-792242' class='answer   answerof-197549 ' value='792242'   \/><label for='answer-id-792242' id='answer-label-792242' class=' answer'><span>The confidence level could not be quantified.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197549[]' id='answer-id-792243' class='answer   answerof-197549 ' value='792243'   \/><label for='answer-id-792243' id='answer-label-792243' class=' answer'><span>The precision would be larger.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197549[]' id='answer-id-792244' class='answer   answerof-197549 ' value='792244'   \/><label for='answer-id-792244' id='answer-label-792244' class=' answer'><span>The projected value of inventory would be less reliable.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197549[]' id='answer-id-792245' class='answer   answerof-197549 ' value='792245'   \/><label for='answer-id-792245' id='answer-label-792245' class=' answer'><span>The risk of incorrect acceptance would be higher.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-46' style=';'><div id='questionWrap-46'  class='   watupro-question-id-197550'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>46. <\/span>The most effective way for internal auditors to enhance the reliability of computerized financial and operating information is by:<\/div><input type='hidden' name='question_id[]' id='qID_46' value='197550' \/><input type='hidden' id='answerType197550' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197550[]' id='answer-id-792246' class='answer   answerof-197550 ' value='792246'   \/><label for='answer-id-792246' id='answer-label-792246' class=' answer'><span>Determining if controls over record keeping and reporting are adequate and effective.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197550[]' id='answer-id-792247' class='answer   answerof-197550 ' value='792247'   \/><label for='answer-id-792247' id='answer-label-792247' class=' answer'><span>Reviewing data provided by information systems to test compliance with external requirements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197550[]' id='answer-id-792248' class='answer   answerof-197550 ' value='792248'   \/><label for='answer-id-792248' id='answer-label-792248' class=' answer'><span>Determining if information systems provide management with timely information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197550[]' id='answer-id-792249' class='answer   answerof-197550 ' value='792249'   \/><label for='answer-id-792249' id='answer-label-792249' class=' answer'><span>Determining if information systems provide complete information.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-47' style=';'><div id='questionWrap-47'  class='   watupro-question-id-197551'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>47. <\/span>When conducting research, which of the following is most important?<\/div><input type='hidden' name='question_id[]' id='qID_47' value='197551' \/><input type='hidden' id='answerType197551' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197551[]' id='answer-id-792250' class='answer   answerof-197551 ' value='792250'   \/><label for='answer-id-792250' id='answer-label-792250' class=' answer'><span>Using computer databases or the Internet to find all relevant sources.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197551[]' id='answer-id-792251' class='answer   answerof-197551 ' value='792251'   \/><label for='answer-id-792251' id='answer-label-792251' class=' answer'><span>Providing documentation of the reference sources.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197551[]' id='answer-id-792252' class='answer   answerof-197551 ' value='792252'   \/><label for='answer-id-792252' id='answer-label-792252' class=' answer'><span>Presenting only those facts that support the conclusion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197551[]' id='answer-id-792253' class='answer   answerof-197551 ' value='792253'   \/><label for='answer-id-792253' id='answer-label-792253' class=' answer'><span>Presenting all contrary views to balance the opinion.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-48' style=';'><div id='questionWrap-48'  class='   watupro-question-id-197552'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>48. <\/span>Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?<\/div><input type='hidden' name='question_id[]' id='qID_48' value='197552' \/><input type='hidden' id='answerType197552' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197552[]' id='answer-id-792254' class='answer   answerof-197552 ' value='792254'   \/><label for='answer-id-792254' id='answer-label-792254' class=' answer'><span>Contingent facility contract analysis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197552[]' id='answer-id-792255' class='answer   answerof-197552 ' value='792255'   \/><label for='answer-id-792255' id='answer-label-792255' class=' answer'><span>System backup analysis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197552[]' id='answer-id-792256' class='answer   answerof-197552 ' value='792256'   \/><label for='answer-id-792256' id='answer-label-792256' class=' answer'><span>Vendor supply agreement analysis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197552[]' id='answer-id-792257' class='answer   answerof-197552 ' value='792257'   \/><label for='answer-id-792257' id='answer-label-792257' class=' answer'><span>Risk analysis.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-49' style=';'><div id='questionWrap-49'  class='   watupro-question-id-197553'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>49. <\/span>An internal auditor is assigned to conduct an audit of security for a local area network <br \/>\r<br>(LAN) in the finance department of the organization. Investment decisions, including the use of hedging strategies and financial derivatives, use data and financial models which run on the LAN. The LAN is also used to download data from the mainframe to assist in decisions. <br \/>\r<br>Which of the following should be considered outside the scope of this security audit engagement?<\/div><input type='hidden' name='question_id[]' id='qID_49' value='197553' \/><input type='hidden' id='answerType197553' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197553[]' id='answer-id-792258' class='answer   answerof-197553 ' value='792258'   \/><label for='answer-id-792258' id='answer-label-792258' class=' answer'><span>Investigation of the physical security over access to the components of the LA<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197553[]' id='answer-id-792259' class='answer   answerof-197553 ' value='792259'   \/><label for='answer-id-792259' id='answer-label-792259' class=' answer'><span>The ability of the LAN application to identify data items at the field or record level and implement user access security at that level.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197553[]' id='answer-id-792260' class='answer   answerof-197553 ' value='792260'   \/><label for='answer-id-792260' id='answer-label-792260' class=' answer'><span>Interviews with users to determine their assessment of the level of security in the system and the vulnerability of the system to compromise.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197553[]' id='answer-id-792261' class='answer   answerof-197553 ' value='792261'   \/><label for='answer-id-792261' id='answer-label-792261' class=' answer'><span>The level of security of other LANs in the company which also utilize sensitive data.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-50' style=';'><div id='questionWrap-50'  class='   watupro-question-id-197554'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>50. <\/span>During an operational audit of a chain of pizza delivery stores, an auditor determined that cold pizzas were causing customer dissatisfaction. A review of oven calibration records for the last six months revealed that adjustments were made on over 40 percent of the ovens. <br \/>\r<br>Based on this, the auditor:<\/div><input type='hidden' name='question_id[]' id='qID_50' value='197554' \/><input type='hidden' id='answerType197554' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197554[]' id='answer-id-792262' class='answer   answerof-197554 ' value='792262'   \/><label for='answer-id-792262' id='answer-label-792262' class=' answer'><span>Has enough evidence to conclude that improperly functioning ovens are the cause.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197554[]' id='answer-id-792263' class='answer   answerof-197554 ' value='792263'   \/><label for='answer-id-792263' id='answer-label-792263' class=' answer'><span>Needs to conduct further inquiries and reviews to determine the impact of the oven variations on the pizza temperature.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197554[]' id='answer-id-792264' class='answer   answerof-197554 ' value='792264'   \/><label for='answer-id-792264' id='answer-label-792264' class=' answer'><span>Has enough evidence to recommend the replacement of some of the ovens.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197554[]' id='answer-id-792265' class='answer   answerof-197554 ' value='792265'   \/><label for='answer-id-792265' id='answer-label-792265' class=' answer'><span>Must search for another cause since approximately 60 percent of the ovens did not require adjustment.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-51' style=';'><div id='questionWrap-51'  class='   watupro-question-id-197555'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>51. <\/span>The efficiency of internal audit operations is best enhanced if workpaper standards:<\/div><input type='hidden' name='question_id[]' id='qID_51' value='197555' \/><input type='hidden' id='answerType197555' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197555[]' id='answer-id-792266' class='answer   answerof-197555 ' value='792266'   \/><label for='answer-id-792266' id='answer-label-792266' class=' answer'><span>Permit the extent of documentation to vary according to engagement objectives.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197555[]' id='answer-id-792267' class='answer   answerof-197555 ' value='792267'   \/><label for='answer-id-792267' id='answer-label-792267' class=' answer'><span>Require supervisors to initial and date each workpaper that they review.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197555[]' id='answer-id-792268' class='answer   answerof-197555 ' value='792268'   \/><label for='answer-id-792268' id='answer-label-792268' class=' answer'><span>Allow access to workpapers by external parties if approved by senior management or the audit committee.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197555[]' id='answer-id-792269' class='answer   answerof-197555 ' value='792269'   \/><label for='answer-id-792269' id='answer-label-792269' class=' answer'><span>Mandate the workpaper retention period.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-52' style=';'><div id='questionWrap-52'  class='   watupro-question-id-197556'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>52. <\/span>Direct staff as a percentage of total staff is an example of which of the following types of efficiency measures?<\/div><input type='hidden' name='question_id[]' id='qID_52' value='197556' \/><input type='hidden' id='answerType197556' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197556[]' id='answer-id-792270' class='answer   answerof-197556 ' value='792270'   \/><label for='answer-id-792270' id='answer-label-792270' class=' answer'><span>Productivity ratio.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197556[]' id='answer-id-792271' class='answer   answerof-197556 ' value='792271'   \/><label for='answer-id-792271' id='answer-label-792271' class=' answer'><span>Productivity index.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197556[]' id='answer-id-792272' class='answer   answerof-197556 ' value='792272'   \/><label for='answer-id-792272' id='answer-label-792272' class=' answer'><span>Operating ratio.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197556[]' id='answer-id-792273' class='answer   answerof-197556 ' value='792273'   \/><label for='answer-id-792273' id='answer-label-792273' class=' answer'><span>Resource utilization rate.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-53' style=';'><div id='questionWrap-53'  class='   watupro-question-id-197557'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>53. <\/span>Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?<\/div><input type='hidden' name='question_id[]' id='qID_53' value='197557' \/><input type='hidden' id='answerType197557' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197557[]' id='answer-id-792274' class='answer   answerof-197557 ' value='792274'   \/><label for='answer-id-792274' id='answer-label-792274' class=' answer'><span>Include both the audit finding and the client's position in the audit report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197557[]' id='answer-id-792275' class='answer   answerof-197557 ' value='792275'   \/><label for='answer-id-792275' id='answer-label-792275' class=' answer'><span>Defer reporting the item and plan to perform more detailed work during the next audit.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197557[]' id='answer-id-792276' class='answer   answerof-197557 ' value='792276'   \/><label for='answer-id-792276' id='answer-label-792276' class=' answer'><span>Change the finding so that it is acceptable to the client.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197557[]' id='answer-id-792277' class='answer   answerof-197557 ' value='792277'   \/><label for='answer-id-792277' id='answer-label-792277' class=' answer'><span>Address the issue with senior management and the board for resolution prior to issuing the final report.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-54' style=';'><div id='questionWrap-54'  class='   watupro-question-id-197558'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>54. <\/span>Which of the following would be most helpful to a governmental auditor searching for the existence of multiple welfare claims that were filed under different names but used the same address?<\/div><input type='hidden' name='question_id[]' id='qID_54' value='197558' \/><input type='hidden' id='answerType197558' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197558[]' id='answer-id-792278' class='answer   answerof-197558 ' value='792278'   \/><label for='answer-id-792278' id='answer-label-792278' class=' answer'><span>Tagging and tracing.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197558[]' id='answer-id-792279' class='answer   answerof-197558 ' value='792279'   \/><label for='answer-id-792279' id='answer-label-792279' class=' answer'><span>Generalized audit software.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197558[]' id='answer-id-792280' class='answer   answerof-197558 ' value='792280'   \/><label for='answer-id-792280' id='answer-label-792280' class=' answer'><span>Integrated test facility.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197558[]' id='answer-id-792281' class='answer   answerof-197558 ' value='792281'   \/><label for='answer-id-792281' id='answer-label-792281' class=' answer'><span>Spreadsheet analysis.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-55' style=';'><div id='questionWrap-55'  class='   watupro-question-id-197559'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>55. <\/span>Which sampling plan requires no additional sampling once the first error is found?<\/div><input type='hidden' name='question_id[]' id='qID_55' value='197559' \/><input type='hidden' id='answerType197559' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197559[]' id='answer-id-792282' class='answer   answerof-197559 ' value='792282'   \/><label for='answer-id-792282' id='answer-label-792282' class=' answer'><span>Stratified sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197559[]' id='answer-id-792283' class='answer   answerof-197559 ' value='792283'   \/><label for='answer-id-792283' id='answer-label-792283' class=' answer'><span>Attributes sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197559[]' id='answer-id-792284' class='answer   answerof-197559 ' value='792284'   \/><label for='answer-id-792284' id='answer-label-792284' class=' answer'><span>Stop-or-go sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197559[]' id='answer-id-792285' class='answer   answerof-197559 ' value='792285'   \/><label for='answer-id-792285' id='answer-label-792285' class=' answer'><span>Discovery sampling.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-56' style=';'><div id='questionWrap-56'  class='   watupro-question-id-197560'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>56. <\/span>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?<\/div><input type='hidden' name='question_id[]' id='qID_56' value='197560' \/><input type='hidden' id='answerType197560' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197560[]' id='answer-id-792286' class='answer   answerof-197560 ' value='792286'   \/><label for='answer-id-792286' id='answer-label-792286' class=' answer'><span>Pre-numbered customer invoices.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197560[]' id='answer-id-792287' class='answer   answerof-197560 ' value='792287'   \/><label for='answer-id-792287' id='answer-label-792287' class=' answer'><span>Accounts receivable transactions.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197560[]' id='answer-id-792288' class='answer   answerof-197560 ' value='792288'   \/><label for='answer-id-792288' id='answer-label-792288' class=' answer'><span>Pre-numbered shipping documents.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197560[]' id='answer-id-792289' class='answer   answerof-197560 ' value='792289'   \/><label for='answer-id-792289' id='answer-label-792289' class=' answer'><span>Customer purchase orders.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-57' style=';'><div id='questionWrap-57'  class='   watupro-question-id-197561'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>57. <\/span>A manufacturing process could create hazardous waste at several production stages, from raw materials handling to finished goods storage. <br \/>\r<br>If the objective of a pollution prevention audit engagement is to identify opportunities for minimizing waste, in what order should the following opportunities be considered? <br \/>\r<br>I. Recycling and reuse. <br \/>\r<br>II. Elimination at the source. <br \/>\r<br>III. Energy conservation. <br \/>\r<br>IV. Recovery as a usable product Treatment.<\/div><input type='hidden' name='question_id[]' id='qID_57' value='197561' \/><input type='hidden' id='answerType197561' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197561[]' id='answer-id-792290' class='answer   answerof-197561 ' value='792290'   \/><label for='answer-id-792290' id='answer-label-792290' class=' answer'><span>V, II, IV, I, II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197561[]' id='answer-id-792291' class='answer   answerof-197561 ' value='792291'   \/><label for='answer-id-792291' id='answer-label-792291' class=' answer'><span>IV, II, I, III,<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197561[]' id='answer-id-792292' class='answer   answerof-197561 ' value='792292'   \/><label for='answer-id-792292' id='answer-label-792292' class=' answer'><span>I, III, IV, II,<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197561[]' id='answer-id-792293' class='answer   answerof-197561 ' value='792293'   \/><label for='answer-id-792293' id='answer-label-792293' class=' answer'><span>III, IV, II, V,<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-58' style=';'><div id='questionWrap-58'  class='   watupro-question-id-197562'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>58. <\/span>Which of the following audit techniques provides for continuous monitoring and analysis of computer transactions for detailed auditing?<\/div><input type='hidden' name='question_id[]' id='qID_58' value='197562' \/><input type='hidden' id='answerType197562' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197562[]' id='answer-id-792294' class='answer   answerof-197562 ' value='792294'   \/><label for='answer-id-792294' id='answer-label-792294' class=' answer'><span>Integrated test facility.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197562[]' id='answer-id-792295' class='answer   answerof-197562 ' value='792295'   \/><label for='answer-id-792295' id='answer-label-792295' class=' answer'><span>Parallel simul-ation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197562[]' id='answer-id-792296' class='answer   answerof-197562 ' value='792296'   \/><label for='answer-id-792296' id='answer-label-792296' class=' answer'><span>Test data.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197562[]' id='answer-id-792297' class='answer   answerof-197562 ' value='792297'   \/><label for='answer-id-792297' id='answer-label-792297' class=' answer'><span>Embedded audit routines.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-59' style=';'><div id='questionWrap-59'  class='   watupro-question-id-197563'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>59. <\/span>An internal audit activity is participating in the due diligence work for an acquisition that a company is considering. One engagement objective is to determine if the acquisition's accounts payable contain all outstanding liabilities. <br \/>\r<br>Which of the following audit procedures would not be relevant for this objective?<\/div><input type='hidden' name='question_id[]' id='qID_59' value='197563' \/><input type='hidden' id='answerType197563' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197563[]' id='answer-id-792298' class='answer   answerof-197563 ' value='792298'   \/><label for='answer-id-792298' id='answer-label-792298' class=' answer'><span>Examine supporting documentation of subsequent (after-period) cash disbursements and verify period of liability.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197563[]' id='answer-id-792299' class='answer   answerof-197563 ' value='792299'   \/><label for='answer-id-792299' id='answer-label-792299' class=' answer'><span>Send confirmations, including zero-balance accounts, to vendors with whom the company normally does business.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197563[]' id='answer-id-792300' class='answer   answerof-197563 ' value='792300'   \/><label for='answer-id-792300' id='answer-label-792300' class=' answer'><span>Select a sample of accounts payable from the accounts payable list and verify the supporting receiving reports, purchase orders, and invoices.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197563[]' id='answer-id-792301' class='answer   answerof-197563 ' value='792301'   \/><label for='answer-id-792301' id='answer-label-792301' class=' answer'><span>Trace receiving reports issued before the period end to the related vendor invoices and accounts payable list.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-60' style=';'><div id='questionWrap-60'  class='   watupro-question-id-197564'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>60. <\/span>Which of the following would constitute a violation of the IIA Code of Ethics?<\/div><input type='hidden' name='question_id[]' id='qID_60' value='197564' \/><input type='hidden' id='answerType197564' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197564[]' id='answer-id-792302' class='answer   answerof-197564 ' value='792302'   \/><label for='answer-id-792302' id='answer-label-792302' class=' answer'><span>An internal auditor, who has recently joined the organization, has accepted an assignment to audit the electronics manufacturing division. The auditor previously served as senior auditor for the external audit of that division and has audited many electronics companies during the past two years.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197564[]' id='answer-id-792303' class='answer   answerof-197564 ' value='792303'   \/><label for='answer-id-792303' id='answer-label-792303' class=' answer'><span>An internal auditor has accepted an assignment to audit the warehousing function six months from now. The auditor has no expertise in that area but has signed up for courses in warehousing that will be completed before the assignment begins.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197564[]' id='answer-id-792304' class='answer   answerof-197564 ' value='792304'   \/><label for='answer-id-792304' id='answer-label-792304' class=' answer'><span>An internal auditor has no ambitions for promotion and has not engaged in training or other professional development activities during the last three years. The auditor's performance assessments indicate consistent quality of work.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197564[]' id='answer-id-792305' class='answer   answerof-197564 ' value='792305'   \/><label for='answer-id-792305' id='answer-label-792305' class=' answer'><span>An internal auditor discovered an internal financial fraud during the year, and the financial statements were adjusted to properly reflect the loss associated with the fraud. The auditor discussed the fraud with the external auditor during the external auditor's review of the working papers detailing the incident.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-61' style=';'><div id='questionWrap-61'  class='   watupro-question-id-197565'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>61. <\/span>An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement: <br \/>\r<br>\u201cA statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted.\u201d <br \/>\r<br>The auditor did not place any audit verification symbols on this workpaper. <br \/>\r<br>Which of the following changes would most improve the auditor's workpaper?<\/div><input type='hidden' name='question_id[]' id='qID_61' value='197565' \/><input type='hidden' id='answerType197565' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197565[]' id='answer-id-792306' class='answer   answerof-197565 ' value='792306'   \/><label for='answer-id-792306' id='answer-label-792306' class=' answer'><span>Use of audit verification symbols to show that each file was examined.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197565[]' id='answer-id-792307' class='answer   answerof-197565 ' value='792307'   \/><label for='answer-id-792307' id='answer-label-792307' class=' answer'><span>Removal of the employee names to protect their confidentiality.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197565[]' id='answer-id-792308' class='answer   answerof-197565 ' value='792308'   \/><label for='answer-id-792308' id='answer-label-792308' class=' answer'><span>Justification for the sample size.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197565[]' id='answer-id-792309' class='answer   answerof-197565 ' value='792309'   \/><label for='answer-id-792309' id='answer-label-792309' class=' answer'><span>Listing of the actual documents examined for each employee.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-62' style=';'><div id='questionWrap-62'  class='   watupro-question-id-197566'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>62. <\/span>Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?<\/div><input type='hidden' name='question_id[]' id='qID_62' value='197566' \/><input type='hidden' id='answerType197566' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197566[]' id='answer-id-792310' class='answer   answerof-197566 ' value='792310'   \/><label for='answer-id-792310' id='answer-label-792310' class=' answer'><span>The standard of living of one of the purchasing agents has increased.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197566[]' id='answer-id-792311' class='answer   answerof-197566 ' value='792311'   \/><label for='answer-id-792311' id='answer-label-792311' class=' answer'><span>The internal control structure has significant weaknesses.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197566[]' id='answer-id-792312' class='answer   answerof-197566 ' value='792312'   \/><label for='answer-id-792312' id='answer-label-792312' class=' answer'><span>The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197566[]' id='answer-id-792313' class='answer   answerof-197566 ' value='792313'   \/><label for='answer-id-792313' id='answer-label-792313' class=' answer'><span>The cost of goods procured seems to be excessive in comparison with previous years.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-63' style=';'><div id='questionWrap-63'  class='   watupro-question-id-197567'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>63. <\/span>A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. <br \/>\r<br>Which of the following procedures would be appropriate for testing this suspicion? <br \/>\r<br>I. Verify that the contractor has not charged change orders with costs that have already been billed to the original contract. <br \/>\r<br>II. Determine if the contractor has billed for original contract work that was canceled as a result of change orders. <br \/>\r<br>III. Verify that the change orders were properly approved by management.<\/div><input type='hidden' name='question_id[]' id='qID_63' value='197567' \/><input type='hidden' id='answerType197567' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197567[]' id='answer-id-792314' class='answer   answerof-197567 ' value='792314'   \/><label for='answer-id-792314' id='answer-label-792314' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197567[]' id='answer-id-792315' class='answer   answerof-197567 ' value='792315'   \/><label for='answer-id-792315' id='answer-label-792315' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197567[]' id='answer-id-792316' class='answer   answerof-197567 ' value='792316'   \/><label for='answer-id-792316' id='answer-label-792316' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197567[]' id='answer-id-792317' class='answer   answerof-197567 ' value='792317'   \/><label for='answer-id-792317' id='answer-label-792317' class=' answer'><span>I and III only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-64' style=';'><div id='questionWrap-64'  class='   watupro-question-id-197568'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>64. <\/span>Which of the following would be a red flag that indicates the possibility of inventory fraud? <br \/>\r<br>I. The controller has assumed responsibility for approving all payments to certain vendors. <br \/>\r<br>II. The controller has continuously delayed installation of a new accounts payable system, despite a corporate directive to implement it. <br \/>\r<br>III. Sales commissions are not consistent with the organization's increased levels of sales. <br \/>\r<br>IV. Payments to certain vendors are supported by copies of receiving memos, rather than originals.<\/div><input type='hidden' name='question_id[]' id='qID_64' value='197568' \/><input type='hidden' id='answerType197568' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197568[]' id='answer-id-792318' class='answer   answerof-197568 ' value='792318'   \/><label for='answer-id-792318' id='answer-label-792318' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197568[]' id='answer-id-792319' class='answer   answerof-197568 ' value='792319'   \/><label for='answer-id-792319' id='answer-label-792319' class=' answer'><span>II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197568[]' id='answer-id-792320' class='answer   answerof-197568 ' value='792320'   \/><label for='answer-id-792320' id='answer-label-792320' class=' answer'><span>I, II, and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197568[]' id='answer-id-792321' class='answer   answerof-197568 ' value='792321'   \/><label for='answer-id-792321' id='answer-label-792321' class=' answer'><span>I, III, and IV only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-65' style=';'><div id='questionWrap-65'  class='   watupro-question-id-197569'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>65. <\/span>Access control software on an organization's mainframe computer records detailed information concerning both successful and unsuccessful log-on attempts to applications. <br \/>\r<br>Which of the following audit tools would be best suited to review the access information that has been recorded?<\/div><input type='hidden' name='question_id[]' id='qID_65' value='197569' \/><input type='hidden' id='answerType197569' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197569[]' id='answer-id-792322' class='answer   answerof-197569 ' value='792322'   \/><label for='answer-id-792322' id='answer-label-792322' class=' answer'><span>Generalized audit software.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197569[]' id='answer-id-792323' class='answer   answerof-197569 ' value='792323'   \/><label for='answer-id-792323' id='answer-label-792323' class=' answer'><span>Flowcharting.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197569[]' id='answer-id-792324' class='answer   answerof-197569 ' value='792324'   \/><label for='answer-id-792324' id='answer-label-792324' class=' answer'><span>Integrated test facility.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197569[]' id='answer-id-792325' class='answer   answerof-197569 ' value='792325'   \/><label for='answer-id-792325' id='answer-label-792325' class=' answer'><span>Test data.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-66' style=';'><div id='questionWrap-66'  class='   watupro-question-id-197570'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>66. <\/span>An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. <br \/>\r<br>The auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_66' value='197570' \/><input type='hidden' id='answerType197570' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197570[]' id='answer-id-792326' class='answer   answerof-197570 ' value='792326'   \/><label for='answer-id-792326' id='answer-label-792326' class=' answer'><span>Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197570[]' id='answer-id-792327' class='answer   answerof-197570 ' value='792327'   \/><label for='answer-id-792327' id='answer-label-792327' class=' answer'><span>Apply analytical procedures to areas that might be impacted by possible fraudulent activities.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197570[]' id='answer-id-792328' class='answer   answerof-197570 ' value='792328'   \/><label for='answer-id-792328' id='answer-label-792328' class=' answer'><span>Interview employees to identify areas where the fraud could be occurring.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197570[]' id='answer-id-792329' class='answer   answerof-197570 ' value='792329'   \/><label for='answer-id-792329' id='answer-label-792329' class=' answer'><span>Plan detailed tests of the areas that have the highest dollar amount of transactions.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-67' style=';'><div id='questionWrap-67'  class='   watupro-question-id-197571'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>67. <\/span>Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?<\/div><input type='hidden' name='question_id[]' id='qID_67' value='197571' \/><input type='hidden' id='answerType197571' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197571[]' id='answer-id-792330' class='answer   answerof-197571 ' value='792330'   \/><label for='answer-id-792330' id='answer-label-792330' class=' answer'><span>Observe the process.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197571[]' id='answer-id-792331' class='answer   answerof-197571 ' value='792331'   \/><label for='answer-id-792331' id='answer-label-792331' class=' answer'><span>Review the trend in receivables write-offs.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197571[]' id='answer-id-792332' class='answer   answerof-197571 ' value='792332'   \/><label for='answer-id-792332' id='answer-label-792332' class=' answer'><span>Ask the credit manager about the effectiveness of the function.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197571[]' id='answer-id-792333' class='answer   answerof-197571 ' value='792333'   \/><label for='answer-id-792333' id='answer-label-792333' class=' answer'><span>Check for evidence of credit approval on a sample of customer orders.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-68' style=';'><div id='questionWrap-68'  class='   watupro-question-id-197572'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>68. <\/span>The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures? <br \/>\r<br>I. Financial measures. <br \/>\r<br>II. Internal business process measures. <br \/>\r<br>III. Client satisfaction measures. <br \/>\r<br>IV. Innovation and learning measures.<\/div><input type='hidden' name='question_id[]' id='qID_68' value='197572' \/><input type='hidden' id='answerType197572' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197572[]' id='answer-id-792334' class='answer   answerof-197572 ' value='792334'   \/><label for='answer-id-792334' id='answer-label-792334' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197572[]' id='answer-id-792335' class='answer   answerof-197572 ' value='792335'   \/><label for='answer-id-792335' id='answer-label-792335' class=' answer'><span>II and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197572[]' id='answer-id-792336' class='answer   answerof-197572 ' value='792336'   \/><label for='answer-id-792336' id='answer-label-792336' class=' answer'><span>III and IV only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197572[]' id='answer-id-792337' class='answer   answerof-197572 ' value='792337'   \/><label for='answer-id-792337' id='answer-label-792337' class=' answer'><span>II, III, and IV only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-69' style=';'><div id='questionWrap-69'  class='   watupro-question-id-197573'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>69. <\/span>New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management's data and information provide.<\/div><input type='hidden' name='question_id[]' id='qID_69' value='197573' \/><input type='hidden' id='answerType197573' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197573[]' id='answer-id-792338' class='answer   answerof-197573 ' value='792338'   \/><label for='answer-id-792338' id='answer-label-792338' class=' answer'><span>Feedback control data.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197573[]' id='answer-id-792339' class='answer   answerof-197573 ' value='792339'   \/><label for='answer-id-792339' id='answer-label-792339' class=' answer'><span>Irrelevant and argumentative information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197573[]' id='answer-id-792340' class='answer   answerof-197573 ' value='792340'   \/><label for='answer-id-792340' id='answer-label-792340' class=' answer'><span>Evidence that the new credit policies do not meet the stated corporate objective to improve collections.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197573[]' id='answer-id-792341' class='answer   answerof-197573 ' value='792341'   \/><label for='answer-id-792341' id='answer-label-792341' class=' answer'><span>A statistically valid conclusion about the impact of the new credit policies on customer goodwill.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-70' style=';'><div id='questionWrap-70'  class='   watupro-question-id-197574'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>70. <\/span>The most common motivation for management fraud is the existence of:<\/div><input type='hidden' name='question_id[]' id='qID_70' value='197574' \/><input type='hidden' id='answerType197574' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197574[]' id='answer-id-792342' class='answer   answerof-197574 ' value='792342'   \/><label for='answer-id-792342' id='answer-label-792342' class=' answer'><span>Vices, such as a gambling habit.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197574[]' id='answer-id-792343' class='answer   answerof-197574 ' value='792343'   \/><label for='answer-id-792343' id='answer-label-792343' class=' answer'><span>Job dissatisfaction.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197574[]' id='answer-id-792344' class='answer   answerof-197574 ' value='792344'   \/><label for='answer-id-792344' id='answer-label-792344' class=' answer'><span>Financial pressures on the organization.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197574[]' id='answer-id-792345' class='answer   answerof-197574 ' value='792345'   \/><label for='answer-id-792345' id='answer-label-792345' class=' answer'><span>The challenge of committing the perfect crime.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-71' style=';'><div id='questionWrap-71'  class='   watupro-question-id-197575'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>71. <\/span>If an organization's chief audit executive wants to implement continuous auditing, what is the appropriate order in which key steps should be undertaken? <br \/>\r<br>I. Identify business applications that require access. <br \/>\r<br>II. Implement steps to continuously assess risks and controls. <br \/>\r<br>III. Define objectives of continuous auditing. <br \/>\r<br>IV. Manage and report results.<\/div><input type='hidden' name='question_id[]' id='qID_71' value='197575' \/><input type='hidden' id='answerType197575' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197575[]' id='answer-id-792346' class='answer   answerof-197575 ' value='792346'   \/><label for='answer-id-792346' id='answer-label-792346' class=' answer'><span>III, I, IV, I<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197575[]' id='answer-id-792347' class='answer   answerof-197575 ' value='792347'   \/><label for='answer-id-792347' id='answer-label-792347' class=' answer'><span>II, I, III, I<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197575[]' id='answer-id-792348' class='answer   answerof-197575 ' value='792348'   \/><label for='answer-id-792348' id='answer-label-792348' class=' answer'><span>III, I, II, I<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197575[]' id='answer-id-792349' class='answer   answerof-197575 ' value='792349'   \/><label for='answer-id-792349' id='answer-label-792349' class=' answer'><span>II, III, I, I<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-72' style=';'><div id='questionWrap-72'  class='   watupro-question-id-197576'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>72. <\/span>Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?<\/div><input type='hidden' name='question_id[]' id='qID_72' value='197576' \/><input type='hidden' id='answerType197576' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197576[]' id='answer-id-792350' class='answer   answerof-197576 ' value='792350'   \/><label for='answer-id-792350' id='answer-label-792350' class=' answer'><span>Use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. Select a sample of those invoices and trace to supporting documents such as receiving reports.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197576[]' id='answer-id-792351' class='answer   answerof-197576 ' value='792351'   \/><label for='answer-id-792351' id='answer-label-792351' class=' answer'><span>Select a sample of payments made during the year and investigate each one for approval.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197576[]' id='answer-id-792352' class='answer   answerof-197576 ' value='792352'   \/><label for='answer-id-792352' id='answer-label-792352' class=' answer'><span>Select a sample of receiving reports representative of the period under investigation and trace to approved payment. Note any items not properly processed.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197576[]' id='answer-id-792353' class='answer   answerof-197576 ' value='792353'   \/><label for='answer-id-792353' id='answer-label-792353' class=' answer'><span>Select a sample of invoices paid during the past month and trace them to appropriate vendor accounts.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-73' style=';'><div id='questionWrap-73'  class='   watupro-question-id-197577'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>73. <\/span>What does the following scatter gram suggest?<\/div><input type='hidden' name='question_id[]' id='qID_73' value='197577' \/><input type='hidden' id='answerType197577' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197577[]' id='answer-id-792354' class='answer   answerof-197577 ' value='792354'   \/><label for='answer-id-792354' id='answer-label-792354' class=' answer'><span>Sales revenue is related to training costs.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197577[]' id='answer-id-792355' class='answer   answerof-197577 ' value='792355'   \/><label for='answer-id-792355' id='answer-label-792355' class=' answer'><span>The training program is not effective.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197577[]' id='answer-id-792356' class='answer   answerof-197577 ' value='792356'   \/><label for='answer-id-792356' id='answer-label-792356' class=' answer'><span>Increases in training costs consistently increase sales revenue.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197577[]' id='answer-id-792357' class='answer   answerof-197577 ' value='792357'   \/><label for='answer-id-792357' id='answer-label-792357' class=' answer'><span>One data point is incorrectly plotted.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-74' style=';'><div id='questionWrap-74'  class='   watupro-question-id-197578'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>74. <\/span>If an auditor is sampling to test compliance with a particular company policy, which of the following factors should not affect the allowable level of sampling risk?<\/div><input type='hidden' name='question_id[]' id='qID_74' value='197578' \/><input type='hidden' id='answerType197578' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197578[]' id='answer-id-792358' class='answer   answerof-197578 ' value='792358'   \/><label for='answer-id-792358' id='answer-label-792358' class=' answer'><span>The experience and knowledge of the auditor.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197578[]' id='answer-id-792359' class='answer   answerof-197578 ' value='792359'   \/><label for='answer-id-792359' id='answer-label-792359' class=' answer'><span>The adverse consequences of noncompliance.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197578[]' id='answer-id-792360' class='answer   answerof-197578 ' value='792360'   \/><label for='answer-id-792360' id='answer-label-792360' class=' answer'><span>The acceptable level of risk of making an incorrect audit conclusion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197578[]' id='answer-id-792361' class='answer   answerof-197578 ' value='792361'   \/><label for='answer-id-792361' id='answer-label-792361' class=' answer'><span>The cost of performing auditing procedures on sample selections.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-75' style=';'><div id='questionWrap-75'  class='   watupro-question-id-197579'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>75. <\/span>An internal audit activity implemented an integrated test facility to test payroll processing. The auditors identified the key controls and processing steps built into the computer program and developed test data to test them. The auditors submitted test transactions throughout the year and did not find any differences in their test results. <br \/>\r<br>The auditors can conclude that:<\/div><input type='hidden' name='question_id[]' id='qID_75' value='197579' \/><input type='hidden' id='answerType197579' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197579[]' id='answer-id-792362' class='answer   answerof-197579 ' value='792362'   \/><label for='answer-id-792362' id='answer-label-792362' class=' answer'><span>The system is properly capturing the hours worked by employees during the year and the hours have been properly submitted to payroll and processed correctly.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197579[]' id='answer-id-792363' class='answer   answerof-197579 ' value='792363'   \/><label for='answer-id-792363' id='answer-label-792363' class=' answer'><span>All employees were correctly paid during the year and their pay was correctly computed.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197579[]' id='answer-id-792364' class='answer   answerof-197579 ' value='792364'   \/><label for='answer-id-792364' id='answer-label-792364' class=' answer'><span>The computer application and its control procedures were processing payroll \r\ntransactions correctly during the past year.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197579[]' id='answer-id-792365' class='answer   answerof-197579 ' value='792365'   \/><label for='answer-id-792365' id='answer-label-792365' class=' answer'><span>All of the above.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-76' style=';'><div id='questionWrap-76'  class='   watupro-question-id-197580'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>76. <\/span>Which of the following trends found on financial reports would most likely indicate a possible problem?<\/div><input type='hidden' name='question_id[]' id='qID_76' value='197580' \/><input type='hidden' id='answerType197580' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197580[]' id='answer-id-792366' class='answer   answerof-197580 ' value='792366'   \/><label for='answer-id-792366' id='answer-label-792366' class=' answer'><span>A material decrease in the receivables turnover.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197580[]' id='answer-id-792367' class='answer   answerof-197580 ' value='792367'   \/><label for='answer-id-792367' id='answer-label-792367' class=' answer'><span>A material increase in inventory turnover.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197580[]' id='answer-id-792368' class='answer   answerof-197580 ' value='792368'   \/><label for='answer-id-792368' id='answer-label-792368' class=' answer'><span>A material increase in daily sales compared to total outstanding receivables.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197580[]' id='answer-id-792369' class='answer   answerof-197580 ' value='792369'   \/><label for='answer-id-792369' id='answer-label-792369' class=' answer'><span>A material increase in the acid-test ratio.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-77' style=';'><div id='questionWrap-77'  class='   watupro-question-id-197581'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>77. <\/span>Which of the following conditions is the strongest indicator of possible fraud?<\/div><input type='hidden' name='question_id[]' id='qID_77' value='197581' \/><input type='hidden' id='answerType197581' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197581[]' id='answer-id-792370' class='answer   answerof-197581 ' value='792370'   \/><label for='answer-id-792370' id='answer-label-792370' class=' answer'><span>An assistant treasurer who refuses to take vacations.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197581[]' id='answer-id-792371' class='answer   answerof-197581 ' value='792371'   \/><label for='answer-id-792371' id='answer-label-792371' class=' answer'><span>Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197581[]' id='answer-id-792372' class='answer   answerof-197581 ' value='792372'   \/><label for='answer-id-792372' id='answer-label-792372' class=' answer'><span>A condition of excess manufacturing waste material.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197581[]' id='answer-id-792373' class='answer   answerof-197581 ' value='792373'   \/><label for='answer-id-792373' id='answer-label-792373' class=' answer'><span>A manager who is often over budget at the end of a reporting period.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-78' style=';'><div id='questionWrap-78'  class='   watupro-question-id-197582'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>78. <\/span>Which of the following would be an appropriate and effective control self-assessment approach in an organization with an authoritative culture? <br \/>\r<br>I. Facilitated meeting <br \/>\r<br>II. Survey <br \/>\r<br>III. Management-produced analysis<\/div><input type='hidden' name='question_id[]' id='qID_78' value='197582' \/><input type='hidden' id='answerType197582' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197582[]' id='answer-id-792374' class='answer   answerof-197582 ' value='792374'   \/><label for='answer-id-792374' id='answer-label-792374' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197582[]' id='answer-id-792375' class='answer   answerof-197582 ' value='792375'   \/><label for='answer-id-792375' id='answer-label-792375' class=' answer'><span>I and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197582[]' id='answer-id-792376' class='answer   answerof-197582 ' value='792376'   \/><label for='answer-id-792376' id='answer-label-792376' class=' answer'><span>II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197582[]' id='answer-id-792377' class='answer   answerof-197582 ' value='792377'   \/><label for='answer-id-792377' id='answer-label-792377' class=' answer'><span>I, II, and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-79' style=';'><div id='questionWrap-79'  class='   watupro-question-id-197583'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>79. <\/span>During an audit of a branch bank, an internal auditor learned that a series of system failures had resulted in a four-day delay in processing customers' scheduled payroll direct deposits. The first failure was that of a disk drive, followed by software and other minor failures. <br \/>\r<br>Which of the following controls should the auditor recommend to avoid similar delays in processing?<\/div><input type='hidden' name='question_id[]' id='qID_79' value='197583' \/><input type='hidden' id='answerType197583' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197583[]' id='answer-id-792378' class='answer   answerof-197583 ' value='792378'   \/><label for='answer-id-792378' id='answer-label-792378' class=' answer'><span>Contingency planning.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197583[]' id='answer-id-792379' class='answer   answerof-197583 ' value='792379'   \/><label for='answer-id-792379' id='answer-label-792379' class=' answer'><span>Redundancy checks.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197583[]' id='answer-id-792380' class='answer   answerof-197583 ' value='792380'   \/><label for='answer-id-792380' id='answer-label-792380' class=' answer'><span>Process monitoring.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197583[]' id='answer-id-792381' class='answer   answerof-197583 ' value='792381'   \/><label for='answer-id-792381' id='answer-label-792381' class=' answer'><span>Preventive maintenance.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-80' style=';'><div id='questionWrap-80'  class='   watupro-question-id-197584'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>80. <\/span>Which of the following situations would best support the decision of a chief audit executive (CAE) to defer follow-up activity at a branch office until the next audit engagement?<\/div><input type='hidden' name='question_id[]' id='qID_80' value='197584' \/><input type='hidden' id='answerType197584' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197584[]' id='answer-id-792382' class='answer   answerof-197584 ' value='792382'   \/><label for='answer-id-792382' id='answer-label-792382' class=' answer'><span>An audit of the branch office is routinely scheduled every three years.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197584[]' id='answer-id-792383' class='answer   answerof-197584 ' value='792383'   \/><label for='answer-id-792383' id='answer-label-792383' class=' answer'><span>On-site follow-up of a remote branch may not be feasible due to travel costs.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197584[]' id='answer-id-792384' class='answer   answerof-197584 ' value='792384'   \/><label for='answer-id-792384' id='answer-label-792384' class=' answer'><span>Branch office management states that correction of the audit issue may take longer than expected.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197584[]' id='answer-id-792385' class='answer   answerof-197584 ' value='792385'   \/><label for='answer-id-792385' id='answer-label-792385' class=' answer'><span>The CAE and management agree that the corrective action taken to date is sufficient.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-81' style=';'><div id='questionWrap-81'  class='   watupro-question-id-197585'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>81. <\/span>An auditor is using an internal control questionnaire as part of a preliminary survey. <br \/>\r<br>Which of the following is the best reason for the auditor to interview management regarding the questionnaire responses?<\/div><input type='hidden' name='question_id[]' id='qID_81' value='197585' \/><input type='hidden' id='answerType197585' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197585[]' id='answer-id-792386' class='answer   answerof-197585 ' value='792386'   \/><label for='answer-id-792386' id='answer-label-792386' class=' answer'><span>Interviews provide the opportunity to insert questions to probe promising areas.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197585[]' id='answer-id-792387' class='answer   answerof-197585 ' value='792387'   \/><label for='answer-id-792387' id='answer-label-792387' class=' answer'><span>Interviews are the most efficient way to upgrade the information to the level of objective evidence.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197585[]' id='answer-id-792388' class='answer   answerof-197585 ' value='792388'   \/><label for='answer-id-792388' id='answer-label-792388' class=' answer'><span>Interviewing is the least costly audit technique when a large amount of information is involved.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197585[]' id='answer-id-792389' class='answer   answerof-197585 ' value='792389'   \/><label for='answer-id-792389' id='answer-label-792389' class=' answer'><span>Interviewing is the only audit procedure which does not require confirmation of the information that is obtained.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-82' style=';'><div id='questionWrap-82'  class='   watupro-question-id-197586'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>82. <\/span>If management expects 100 percent compliance with a procedure, which of the following sampling approaches would be most appropriate?<\/div><input type='hidden' name='question_id[]' id='qID_82' value='197586' \/><input type='hidden' id='answerType197586' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197586[]' id='answer-id-792390' class='answer   answerof-197586 ' value='792390'   \/><label for='answer-id-792390' id='answer-label-792390' class=' answer'><span>Attributes sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197586[]' id='answer-id-792391' class='answer   answerof-197586 ' value='792391'   \/><label for='answer-id-792391' id='answer-label-792391' class=' answer'><span>Discovery sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197586[]' id='answer-id-792392' class='answer   answerof-197586 ' value='792392'   \/><label for='answer-id-792392' id='answer-label-792392' class=' answer'><span>Targeted sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197586[]' id='answer-id-792393' class='answer   answerof-197586 ' value='792393'   \/><label for='answer-id-792393' id='answer-label-792393' class=' answer'><span>Variables sampling.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-83' style=';'><div id='questionWrap-83'  class='   watupro-question-id-197587'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>83. <\/span>During a routine audit of a customer service hotline, an internal auditor noticed that an unusually high number of customer complaints pertained to payments not being applied to the customers' accounts. <br \/>\r<br>Which of the following would most likely be the reason for the high volume of complaints?<\/div><input type='hidden' name='question_id[]' id='qID_83' value='197587' \/><input type='hidden' id='answerType197587' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197587[]' id='answer-id-792394' class='answer   answerof-197587 ' value='792394'   \/><label for='answer-id-792394' id='answer-label-792394' class=' answer'><span>An ineffective customer service department.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197587[]' id='answer-id-792395' class='answer   answerof-197587 ' value='792395'   \/><label for='answer-id-792395' id='answer-label-792395' class=' answer'><span>Poor controls in the invoice approval processes.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197587[]' id='answer-id-792396' class='answer   answerof-197587 ' value='792396'   \/><label for='answer-id-792396' id='answer-label-792396' class=' answer'><span>Check tampering by an employee.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197587[]' id='answer-id-792397' class='answer   answerof-197587 ' value='792397'   \/><label for='answer-id-792397' id='answer-label-792397' class=' answer'><span>Submission of fraudulent expense reports.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-84' style=';'><div id='questionWrap-84'  class='   watupro-question-id-197588'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>84. <\/span>Productivity statistics are provided quarterly to a company's board of directors. An auditor checked the ratios and other statistics in the four most recent reports. The auditor used scratch paper and copies of the board reports to verify the accuracy of computations and compared the data used in the computations with supporting documents. The auditor wrote a note describing this work for the workpapers and then discarded the scratch paper and report copies. The auditor's note stated. <br \/>\r<br>\u201cThe ratios and other statistics in the quarterly board reports were checked for the last four quarters, and appropriate supporting documents were examined. All amounts appear to be appropriate.\u201d <br \/>\r<br>In this situation:<\/div><input type='hidden' name='question_id[]' id='qID_84' value='197588' \/><input type='hidden' id='answerType197588' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197588[]' id='answer-id-792398' class='answer   answerof-197588 ' value='792398'   \/><label for='answer-id-792398' id='answer-label-792398' class=' answer'><span>Four quarters is not a large enough sample on which to base a conclusion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197588[]' id='answer-id-792399' class='answer   answerof-197588 ' value='792399'   \/><label for='answer-id-792399' id='answer-label-792399' class=' answer'><span>The auditor's workpapers are not sufficient to facilitate an efficient review of the auditor's work.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197588[]' id='answer-id-792400' class='answer   answerof-197588 ' value='792400'   \/><label for='answer-id-792400' id='answer-label-792400' class=' answer'><span>The auditor should have included the scratch paper in the workpapers.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197588[]' id='answer-id-792401' class='answer   answerof-197588 ' value='792401'   \/><label for='answer-id-792401' id='answer-label-792401' class=' answer'><span>The auditor should have considered whether the information in the board report was compiled efficiently.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-85' style=';'><div id='questionWrap-85'  class='   watupro-question-id-197589'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>85. <\/span>Which of the following is the best problem-solving technique to use when analyzing performance and cost?<\/div><input type='hidden' name='question_id[]' id='qID_85' value='197589' \/><input type='hidden' id='answerType197589' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197589[]' id='answer-id-792402' class='answer   answerof-197589 ' value='792402'   \/><label for='answer-id-792402' id='answer-label-792402' class=' answer'><span>Value analysis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197589[]' id='answer-id-792403' class='answer   answerof-197589 ' value='792403'   \/><label for='answer-id-792403' id='answer-label-792403' class=' answer'><span>Attribute listing.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197589[]' id='answer-id-792404' class='answer   answerof-197589 ' value='792404'   \/><label for='answer-id-792404' id='answer-label-792404' class=' answer'><span>Brainstorming.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197589[]' id='answer-id-792405' class='answer   answerof-197589 ' value='792405'   \/><label for='answer-id-792405' id='answer-label-792405' class=' answer'><span>Component analysis.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-86' style=';'><div id='questionWrap-86'  class='   watupro-question-id-197590'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>86. <\/span>An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. <br \/>\r<br>The analysis would be potentially useful in: <br \/>\r<br>I. Identifying products for which management has not been attuned to changes in market demand. <br \/>\r<br>II. Identifying potential problems in purchasing activities. <br \/>\r<br>III. Identifying obsolete inventory.<\/div><input type='hidden' name='question_id[]' id='qID_86' value='197590' \/><input type='hidden' id='answerType197590' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197590[]' id='answer-id-792406' class='answer   answerof-197590 ' value='792406'   \/><label for='answer-id-792406' id='answer-label-792406' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197590[]' id='answer-id-792407' class='answer   answerof-197590 ' value='792407'   \/><label for='answer-id-792407' id='answer-label-792407' class=' answer'><span>I and II only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197590[]' id='answer-id-792408' class='answer   answerof-197590 ' value='792408'   \/><label for='answer-id-792408' id='answer-label-792408' class=' answer'><span>II and III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197590[]' id='answer-id-792409' class='answer   answerof-197590 ' value='792409'   \/><label for='answer-id-792409' id='answer-label-792409' class=' answer'><span>I, II, and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-87' style=';'><div id='questionWrap-87'  class='   watupro-question-id-197591'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>87. <\/span>Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?<\/div><input type='hidden' name='question_id[]' id='qID_87' value='197591' \/><input type='hidden' id='answerType197591' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197591[]' id='answer-id-792410' class='answer   answerof-197591 ' value='792410'   \/><label for='answer-id-792410' id='answer-label-792410' class=' answer'><span>Observation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197591[]' id='answer-id-792411' class='answer   answerof-197591 ' value='792411'   \/><label for='answer-id-792411' id='answer-label-792411' class=' answer'><span>Tracing.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197591[]' id='answer-id-792412' class='answer   answerof-197591 ' value='792412'   \/><label for='answer-id-792412' id='answer-label-792412' class=' answer'><span>Re-computation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197591[]' id='answer-id-792413' class='answer   answerof-197591 ' value='792413'   \/><label for='answer-id-792413' id='answer-label-792413' class=' answer'><span>Vouching.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-88' style=';'><div id='questionWrap-88'  class='   watupro-question-id-197592'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>88. <\/span>After partially completing an internal control review of the accounts payable department, an auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to use.<\/div><input type='hidden' name='question_id[]' id='qID_88' value='197592' \/><input type='hidden' id='answerType197592' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197592[]' id='answer-id-792414' class='answer   answerof-197592 ' value='792414'   \/><label for='answer-id-792414' id='answer-label-792414' class=' answer'><span>Simple random sampling to select a sample of vouchers processed by the department during the past year.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197592[]' id='answer-id-792415' class='answer   answerof-197592 ' value='792415'   \/><label for='answer-id-792415' id='answer-label-792415' class=' answer'><span>Probability-proportional-to-size sampling to select a sample of vouchers processed by the department during the past year.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197592[]' id='answer-id-792416' class='answer   answerof-197592 ' value='792416'   \/><label for='answer-id-792416' id='answer-label-792416' class=' answer'><span>Discovery sampling to select a sample of vouchers processed by the department during the past year.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197592[]' id='answer-id-792417' class='answer   answerof-197592 ' value='792417'   \/><label for='answer-id-792417' id='answer-label-792417' class=' answer'><span>Judgmental sampling to select a sample of vouchers processed by clerks who were identified by the department manager as acting suspiciously.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-89' style=';'><div id='questionWrap-89'  class='   watupro-question-id-197593'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>89. <\/span>Which of the following does not represent a difficulty in using red flags as fraud indicators?<\/div><input type='hidden' name='question_id[]' id='qID_89' value='197593' \/><input type='hidden' id='answerType197593' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197593[]' id='answer-id-792418' class='answer   answerof-197593 ' value='792418'   \/><label for='answer-id-792418' id='answer-label-792418' class=' answer'><span>Many common red flags are also associated with situations where no fraud exists.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197593[]' id='answer-id-792419' class='answer   answerof-197593 ' value='792419'   \/><label for='answer-id-792419' id='answer-label-792419' class=' answer'><span>Some red flags are difficult to quantify or to evaluate.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197593[]' id='answer-id-792420' class='answer   answerof-197593 ' value='792420'   \/><label for='answer-id-792420' id='answer-label-792420' class=' answer'><span>Red flag information is only gathered in extraordinary circumstances.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197593[]' id='answer-id-792421' class='answer   answerof-197593 ' value='792421'   \/><label for='answer-id-792421' id='answer-label-792421' class=' answer'><span>The red flags literature is not well enough established to have a positive impact on auditing.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-90' style=';'><div id='questionWrap-90'  class='   watupro-question-id-197594'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>90. <\/span>An auditor for a major retail company suspects that inventory fraud is occurring at three stores which have high costs of goods sold. <br \/>\r<br>Which of the following audit activities would provide the most persuasive evidence that fraud is occurring?<\/div><input type='hidden' name='question_id[]' id='qID_90' value='197594' \/><input type='hidden' id='answerType197594' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197594[]' id='answer-id-792422' class='answer   answerof-197594 ' value='792422'   \/><label for='answer-id-792422' id='answer-label-792422' class=' answer'><span>Use an integrated test facility (ITF) to compare individual sales transactions with test transactions submitted through the ITF and investigate all differences.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197594[]' id='answer-id-792423' class='answer   answerof-197594 ' value='792423'   \/><label for='answer-id-792423' id='answer-label-792423' class=' answer'><span>Interview the three individual store managers to determine if their explanations about the observed differences are the same, and then compare their explanations to that of the section manager.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197594[]' id='answer-id-792424' class='answer   answerof-197594 ' value='792424'   \/><label for='answer-id-792424' id='answer-label-792424' class=' answer'><span>Schedule a surprise inventory audit to include a physical inventory and investigate areas of inventory shrinkage.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197594[]' id='answer-id-792425' class='answer   answerof-197594 ' value='792425'   \/><label for='answer-id-792425' id='answer-label-792425' class=' answer'><span>Select a sample of individual store prices and compare them with the sales entered on the cash register for the same items.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-91' style=';'><div id='questionWrap-91'  class='   watupro-question-id-197595'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>91. <\/span>During the development of a purchasing system, an auditor reviewed the payment authorization program. <br \/>\r<br>Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?<\/div><input type='hidden' name='question_id[]' id='qID_91' value='197595' \/><input type='hidden' id='answerType197595' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197595[]' id='answer-id-792426' class='answer   answerof-197595 ' value='792426'   \/><label for='answer-id-792426' id='answer-label-792426' class=' answer'><span>Issue an exception report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197595[]' id='answer-id-792427' class='answer   answerof-197595 ' value='792427'   \/><label for='answer-id-792427' id='answer-label-792427' class=' answer'><span>Pay the amount billed and adjust the inventory account for the difference.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197595[]' id='answer-id-792428' class='answer   answerof-197595 ' value='792428'   \/><label for='answer-id-792428' id='answer-label-792428' class=' answer'><span>Return the invoice to the vendor for correction.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197595[]' id='answer-id-792429' class='answer   answerof-197595 ' value='792429'   \/><label for='answer-id-792429' id='answer-label-792429' class=' answer'><span>Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-92' style=';'><div id='questionWrap-92'  class='   watupro-question-id-197596'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>92. <\/span>An auditor used a questionnaire during an interview to gather information about the nature of credit sales processing. The questionnaire did not cover some pertinent information offered by the person being interviewed, and the auditor did not document the potential problems for further investigation. <br \/>\r<br>The primary deficiency with the above process is that:<\/div><input type='hidden' name='question_id[]' id='qID_92' value='197596' \/><input type='hidden' id='answerType197596' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197596[]' id='answer-id-792430' class='answer   answerof-197596 ' value='792430'   \/><label for='answer-id-792430' id='answer-label-792430' class=' answer'><span>The auditor failed to consider the importance of the information offered.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197596[]' id='answer-id-792431' class='answer   answerof-197596 ' value='792431'   \/><label for='answer-id-792431' id='answer-label-792431' class=' answer'><span>A questionnaire was used in a situation where a structured interview should have been used.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197596[]' id='answer-id-792432' class='answer   answerof-197596 ' value='792432'   \/><label for='answer-id-792432' id='answer-label-792432' class=' answer'><span>Using a questionnaire precludes the auditor from documenting other information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197596[]' id='answer-id-792433' class='answer   answerof-197596 ' value='792433'   \/><label for='answer-id-792433' id='answer-label-792433' class=' answer'><span>The engagement program was incomplete.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-93' style=';'><div id='questionWrap-93'  class='   watupro-question-id-197597'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>93. <\/span>What is the most important risk in determining the validity of construction delay claims?<\/div><input type='hidden' name='question_id[]' id='qID_93' value='197597' \/><input type='hidden' id='answerType197597' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197597[]' id='answer-id-792434' class='answer   answerof-197597 ' value='792434'   \/><label for='answer-id-792434' id='answer-label-792434' class=' answer'><span>Contractor claims may be submitted prior to completion of the work.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197597[]' id='answer-id-792435' class='answer   answerof-197597 ' value='792435'   \/><label for='answer-id-792435' id='answer-label-792435' class=' answer'><span>Contractor claims may include costs considered in the fixed-price portion of the work.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197597[]' id='answer-id-792436' class='answer   answerof-197597 ' value='792436'   \/><label for='answer-id-792436' id='answer-label-792436' class=' answer'><span>Contractor claims may include subcontractor estimates of balances due to the subcontractor.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197597[]' id='answer-id-792437' class='answer   answerof-197597 ' value='792437'   \/><label for='answer-id-792437' id='answer-label-792437' class=' answer'><span>Contractor claims may be understated.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-94' style=';'><div id='questionWrap-94'  class='   watupro-question-id-197598'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>94. <\/span>In order to effectively elicit sensitive information from an employee during an audit engagement, an auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_94' value='197598' \/><input type='hidden' id='answerType197598' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197598[]' id='answer-id-792438' class='answer   answerof-197598 ' value='792438'   \/><label for='answer-id-792438' id='answer-label-792438' class=' answer'><span>Tell the employee a piece of information obtained from a coworker in a previous interview.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197598[]' id='answer-id-792439' class='answer   answerof-197598 ' value='792439'   \/><label for='answer-id-792439' id='answer-label-792439' class=' answer'><span>Put sensitive questions at the beginning of a questionnaire to ensure that they are answered.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197598[]' id='answer-id-792440' class='answer   answerof-197598 ' value='792440'   \/><label for='answer-id-792440' id='answer-label-792440' class=' answer'><span>Explain that the auditor's reputation for integrity, which is vital to the auditor's business \r\nsuccess, would be seriously damaged if confidentiality were breached.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197598[]' id='answer-id-792441' class='answer   answerof-197598 ' value='792441'   \/><label for='answer-id-792441' id='answer-label-792441' class=' answer'><span>Point out that management has given the auditor full authority to conduct this interview.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-95' style=';'><div id='questionWrap-95'  class='   watupro-question-id-197599'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>95. <\/span>Which of the following would provide the best audit evidence regarding the effectiveness of an applied research department?<\/div><input type='hidden' name='question_id[]' id='qID_95' value='197599' \/><input type='hidden' id='answerType197599' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197599[]' id='answer-id-792442' class='answer   answerof-197599 ' value='792442'   \/><label for='answer-id-792442' id='answer-label-792442' class=' answer'><span>Develop a cost-per-product analysis for products developed over the past five years.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197599[]' id='answer-id-792443' class='answer   answerof-197599 ' value='792443'   \/><label for='answer-id-792443' id='answer-label-792443' class=' answer'><span>Develop a report on revenue generated by or cost savings directly attributable to newly developed products.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197599[]' id='answer-id-792444' class='answer   answerof-197599 ' value='792444'   \/><label for='answer-id-792444' id='answer-label-792444' class=' answer'><span>Compare research as a percentage of revenue between this company and all major competitors in the same industry.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197599[]' id='answer-id-792445' class='answer   answerof-197599 ' value='792445'   \/><label for='answer-id-792445' id='answer-label-792445' class=' answer'><span>Compare the number of this year's new product developments to the number of new product developments for the past five years.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-96' style=';'><div id='questionWrap-96'  class='   watupro-question-id-197600'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>96. <\/span>Which of the following performance criteria would be most useful when measuring the performance of a customer service desk?<\/div><input type='hidden' name='question_id[]' id='qID_96' value='197600' \/><input type='hidden' id='answerType197600' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197600[]' id='answer-id-792446' class='answer   answerof-197600 ' value='792446'   \/><label for='answer-id-792446' id='answer-label-792446' class=' answer'><span>The number of customer inquiries recorded per day.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197600[]' id='answer-id-792447' class='answer   answerof-197600 ' value='792447'   \/><label for='answer-id-792447' id='answer-label-792447' class=' answer'><span>The percentage of customer issues resolved within 24 hours.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197600[]' id='answer-id-792448' class='answer   answerof-197600 ' value='792448'   \/><label for='answer-id-792448' id='answer-label-792448' class=' answer'><span>The number of customer complaints recorded per day.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197600[]' id='answer-id-792449' class='answer   answerof-197600 ' value='792449'   \/><label for='answer-id-792449' id='answer-label-792449' class=' answer'><span>The percentage of total customers served per day.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-97' style=';'><div id='questionWrap-97'  class='   watupro-question-id-197601'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>97. <\/span>A film company determined that income level impacts the number of films that people watch per month, as shown by the graph below: <br \/>\r<br>The graph indicates that:<\/div><input type='hidden' name='question_id[]' id='qID_97' value='197601' \/><input type='hidden' id='answerType197601' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197601[]' id='answer-id-792450' class='answer   answerof-197601 ' value='792450'   \/><label for='answer-id-792450' id='answer-label-792450' class=' answer'><span>A richer person always sees more films than a poorer person.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197601[]' id='answer-id-792451' class='answer   answerof-197601 ' value='792451'   \/><label for='answer-id-792451' id='answer-label-792451' class=' answer'><span>The number of films seen per month is a linear function of income level.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197601[]' id='answer-id-792452' class='answer   answerof-197601 ' value='792452'   \/><label for='answer-id-792452' id='answer-label-792452' class=' answer'><span>A 20 percent pay increase is more likely to increase film viewing at lower income levels than at higher income levels.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197601[]' id='answer-id-792453' class='answer   answerof-197601 ' value='792453'   \/><label for='answer-id-792453' id='answer-label-792453' class=' answer'><span>A 20 percent pay increase is likely to increase film viewing by a constant amount regardless of income level.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-98' style=';'><div id='questionWrap-98'  class='   watupro-question-id-197602'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>98. <\/span>As part of an operational audit of the shipping department, an auditor selected a sample of 45 daily shipping logs from the department's files. On 44 of the days, the log contained a sufficient number of shipments to meet the department's daily quota. Based on this test, the auditor concluded that the shipping department was effective at meeting its quotas. <br \/>\r<br>Which of the following is true about the auditor's conclusion?<\/div><input type='hidden' name='question_id[]' id='qID_98' value='197602' \/><input type='hidden' id='answerType197602' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197602[]' id='answer-id-792454' class='answer   answerof-197602 ' value='792454'   \/><label for='answer-id-792454' id='answer-label-792454' class=' answer'><span>The number of items selected for testing is inadequate to justify the conclusion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197602[]' id='answer-id-792455' class='answer   answerof-197602 ' value='792455'   \/><label for='answer-id-792455' id='answer-label-792455' class=' answer'><span>The shipping department is effective in meeting its responsibilities.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197602[]' id='answer-id-792456' class='answer   answerof-197602 ' value='792456'   \/><label for='answer-id-792456' id='answer-label-792456' class=' answer'><span>This conclusion would negate any need to perform tests of efficiency.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197602[]' id='answer-id-792457' class='answer   answerof-197602 ' value='792457'   \/><label for='answer-id-792457' id='answer-label-792457' class=' answer'><span>None of the above.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-99' style=';'><div id='questionWrap-99'  class='   watupro-question-id-197603'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>99. <\/span>An appliance repair company is considering relocating the center that houses its service vehicles. An internal auditor wants to determine the potential reduction in average miles driven by the service vehicles if the center is relocated. <br \/>\r<br>Which of the following statistical sampling methods would be most appropriate for this test?<\/div><input type='hidden' name='question_id[]' id='qID_99' value='197603' \/><input type='hidden' id='answerType197603' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197603[]' id='answer-id-792458' class='answer   answerof-197603 ' value='792458'   \/><label for='answer-id-792458' id='answer-label-792458' class=' answer'><span>Attributes sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197603[]' id='answer-id-792459' class='answer   answerof-197603 ' value='792459'   \/><label for='answer-id-792459' id='answer-label-792459' class=' answer'><span>Discovery sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197603[]' id='answer-id-792460' class='answer   answerof-197603 ' value='792460'   \/><label for='answer-id-792460' id='answer-label-792460' class=' answer'><span>Probability-proportional-to-size sampling.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197603[]' id='answer-id-792461' class='answer   answerof-197603 ' value='792461'   \/><label for='answer-id-792461' id='answer-label-792461' class=' answer'><span>Mean-per-unit sampling.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-100' style=';'><div id='questionWrap-100'  class='   watupro-question-id-197604'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>100. <\/span>During an audit of a retail organization, an internal auditor found a scheme in which the warehouse director and the purchasing agent diverted approximately $500,000 of goods to their own warehouse, then sold the goods to third parties. The fraud was not found earlier since the warehouse director updated the perpetual inventory records and then forwarded receiving reports to the accounts payable department for processing. <br \/>\r<br>Which of the following procedures would have most likely led to the discovery of the missing materials and the fraud?<\/div><input type='hidden' name='question_id[]' id='qID_100' value='197604' \/><input type='hidden' id='answerType197604' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197604[]' id='answer-id-792462' class='answer   answerof-197604 ' value='792462'   \/><label for='answer-id-792462' id='answer-label-792462' class=' answer'><span>Select a random sample of receiving reports and trace to the recording in the perpetual inventory records. Note differences and investigate by type of product.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197604[]' id='answer-id-792463' class='answer   answerof-197604 ' value='792463'   \/><label for='answer-id-792463' id='answer-label-792463' class=' answer'><span>Select a random sample of purchase orders and trace to receiving reports and to the records in the accounts payable department.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197604[]' id='answer-id-792464' class='answer   answerof-197604 ' value='792464'   \/><label for='answer-id-792464' id='answer-label-792464' class=' answer'><span>Take an annual physical inventory, reconciling amounts with the perpetual inventory records. Note the pattern of differences and investigate.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-197604[]' id='answer-id-792465' class='answer   answerof-197604 ' value='792465'   \/><label for='answer-id-792465' id='answer-label-792465' class=' answer'><span>Select a random sample of sales invoices and trace to the perpetual inventory records to see if inventory was on hand. Investigate any differences.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div style='display:none' id='question-101'>\n\t<div class='question-content'>\n\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading...\" title=\"Loading...\" \/>&nbsp;Loading...\t<\/div>\n<\/div>\n\n<br \/>\n\t\n\t\t\t<div class=\"watupro_buttons flex \" id=\"watuPROButtons5832\" >\n\t\t  <div id=\"prev-question\" style=\"display:none;\"><input type=\"button\" value=\"&lt; Previous\" onclick=\"WatuPRO.nextQuestion(event, 'previous');\"\/><\/div>\t\t  \t\t  \t\t   \n\t\t   \t  \t\t<div><input type=\"button\" name=\"action\" class=\"watupro-submit-button\" onclick=\"WatuPRO.submitResult(event)\" id=\"action-button\" value=\"View Results\"  \/>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\n\t<input type=\"hidden\" name=\"quiz_id\" value=\"5832\" id=\"watuPROExamID\"\/>\n\t<input type=\"hidden\" name=\"start_time\" id=\"startTime\" value=\"2026-05-25 13:12:49\" \/>\n\t<input type=\"hidden\" name=\"start_timestamp\" id=\"startTimeStamp\" value=\"1779714769\" \/>\n\t<input type=\"hidden\" name=\"question_ids\" value=\"\" \/>\n\t<input type=\"hidden\" name=\"watupro_questions\" value=\"197505:792066,792067,792068,792069 | 197506:792070,792071,792072,792073 | 197507:792074,792075,792076,792077 | 197508:792078,792079,792080,792081 | 197509:792082,792083,792084,792085 | 197510:792086,792087,792088,792089 | 197511:792090,792091,792092,792093 | 197512:792094,792095,792096,792097 | 197513:792098,792099,792100,792101 | 197514:792102,792103,792104,792105 | 197515:792106,792107,792108,792109 | 197516:792110,792111,792112,792113 | 197517:792114,792115,792116,792117 | 197518:792118,792119,792120,792121 | 197519:792122,792123,792124,792125 | 197520:792126,792127,792128,792129 | 197521:792130,792131,792132,792133 | 197522:792134,792135,792136,792137 | 197523:792138,792139,792140,792141 | 197524:792142,792143,792144,792145 | 197525:792146,792147,792148,792149 | 197526:792150,792151,792152,792153 | 197527:792154,792155,792156,792157 | 197528:792158,792159,792160,792161 | 197529:792162,792163,792164,792165 | 197530:792166,792167,792168,792169 | 197531:792170,792171,792172,792173 | 197532:792174,792175,792176,792177 | 197533:792178,792179,792180,792181 | 197534:792182,792183,792184,792185 | 197535:792186,792187,792188,792189 | 197536:792190,792191,792192,792193 | 197537:792194,792195,792196,792197 | 197538:792198,792199,792200,792201 | 197539:792202,792203,792204,792205 | 197540:792206,792207,792208,792209 | 197541:792210,792211,792212,792213 | 197542:792214,792215,792216,792217 | 197543:792218,792219,792220,792221 | 197544:792222,792223,792224,792225 | 197545:792226,792227,792228,792229 | 197546:792230,792231,792232,792233 | 197547:792234,792235,792236,792237 | 197548:792238,792239,792240,792241 | 197549:792242,792243,792244,792245 | 197550:792246,792247,792248,792249 | 197551:792250,792251,792252,792253 | 197552:792254,792255,792256,792257 | 197553:792258,792259,792260,792261 | 197554:792262,792263,792264,792265 | 197555:792266,792267,792268,792269 | 197556:792270,792271,792272,792273 | 197557:792274,792275,792276,792277 | 197558:792278,792279,792280,792281 | 197559:792282,792283,792284,792285 | 197560:792286,792287,792288,792289 | 197561:792290,792291,792292,792293 | 197562:792294,792295,792296,792297 | 197563:792298,792299,792300,792301 | 197564:792302,792303,792304,792305 | 197565:792306,792307,792308,792309 | 197566:792310,792311,792312,792313 | 197567:792314,792315,792316,792317 | 197568:792318,792319,792320,792321 | 197569:792322,792323,792324,792325 | 197570:792326,792327,792328,792329 | 197571:792330,792331,792332,792333 | 197572:792334,792335,792336,792337 | 197573:792338,792339,792340,792341 | 197574:792342,792343,792344,792345 | 197575:792346,792347,792348,792349 | 197576:792350,792351,792352,792353 | 197577:792354,792355,792356,792357 | 197578:792358,792359,792360,792361 | 197579:792362,792363,792364,792365 | 197580:792366,792367,792368,792369 | 197581:792370,792371,792372,792373 | 197582:792374,792375,792376,792377 | 197583:792378,792379,792380,792381 | 197584:792382,792383,792384,792385 | 197585:792386,792387,792388,792389 | 197586:792390,792391,792392,792393 | 197587:792394,792395,792396,792397 | 197588:792398,792399,792400,792401 | 197589:792402,792403,792404,792405 | 197590:792406,792407,792408,792409 | 197591:792410,792411,792412,792413 | 197592:792414,792415,792416,792417 | 197593:792418,792419,792420,792421 | 197594:792422,792423,792424,792425 | 197595:792426,792427,792428,792429 | 197596:792430,792431,792432,792433 | 197597:792434,792435,792436,792437 | 197598:792438,792439,792440,792441 | 197599:792442,792443,792444,792445 | 197600:792446,792447,792448,792449 | 197601:792450,792451,792452,792453 | 197602:792454,792455,792456,792457 | 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