Internal Auditing Pre-Final Questions and Answers
Practice Final Exam
ACC 413
Winter 2013
1. Which of the following statements describes an internal control questionnaire? It
A. Provides detailed evidence regarding the substance of the control system.
B. Takes less of the engagement client’s time to complete than other control evaluation devices.
C. Requires that the internal auditor be in attendance to properly administer it.
D. Provides indirect evidence that might need corroboration.
2. Each individual working paper should, at a minimum, contain
A. An expression of the internal auditor’s overall opinion.
B. A tick mark legend.
C. A complete flowchart of the system of internal controls for the area being reviewed.
D. A descriptive heading.
3. An internal auditor has set an engagement objective of determining whether mail room staff is fully used. Which of the following engagement techniques will best meet this objective?
A. Inspection of documents.
B. Observation.
C. Inquiry.
D. Analytical review.
4. In preparing a sampling plan for an inventory pricing test, which of the following describes an advantage of statistical sampling over nonstatistical sampling?
A. Requires nonquantitative expression of sample results.
B. Provides a quantitative measure of sampling risk.
C. Minimizes nonsampling risk.
D. Reduces the level of tolerable error.
5. When an internal auditor uses dollar-unit statistical sampling to examine the total value of invoices, each invoice
A. Has an equal probability of being selected.
B. Can be represented by no more than one dollar unit.
C. Has an unknown possibility of being selected.
D. Has a probability proportional to its dollar value of being selected.
6. To identify the amount of obsolete inventory that may exist in an organization, an internal auditor probably should collect information using all of the following procedures except
A. Confirmation.
B. Scanning.
C. Recomputation.
D. Analytical review.
7. Which of the following most
ACC 413
Winter 2013
1. Which of the following statements describes an internal control questionnaire? It
A. Provides detailed evidence regarding the substance of the control system.
B. Takes less of the engagement client’s time to complete than other control evaluation devices.
C. Requires that the internal auditor be in attendance to properly administer it.
D. Provides indirect evidence that might need corroboration.
2. Each individual working paper should, at a minimum, contain
A. An expression of the internal auditor’s overall opinion.
B. A tick mark legend.
C. A complete flowchart of the system of internal controls for the area being reviewed.
D. A descriptive heading.
3. An internal auditor has set an engagement objective of determining whether mail room staff is fully used. Which of the following engagement techniques will best meet this objective?
A. Inspection of documents.
B. Observation.
C. Inquiry.
D. Analytical review.
4. In preparing a sampling plan for an inventory pricing test, which of the following describes an advantage of statistical sampling over nonstatistical sampling?
A. Requires nonquantitative expression of sample results.
B. Provides a quantitative measure of sampling risk.
C. Minimizes nonsampling risk.
D. Reduces the level of tolerable error.
5. When an internal auditor uses dollar-unit statistical sampling to examine the total value of invoices, each invoice
A. Has an equal probability of being selected.
B. Can be represented by no more than one dollar unit.
C. Has an unknown possibility of being selected.
D. Has a probability proportional to its dollar value of being selected.
6. To identify the amount of obsolete inventory that may exist in an organization, an internal auditor probably should collect information using all of the following procedures except
A. Confirmation.
B. Scanning.
C. Recomputation.
D. Analytical review.
7. Which of the following most