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NEW QUESTION 35
In which of the following situations would it be most appropriate to employ the services of a forensic specialist?

• A. Detection of unauthorized changes to source documents.
• B. Investigation of ghost employees in a large business.
• C. Verification of fixed assets in a manufacturing company.
• D. Review for misapplication of general computer controls over accounts receivable.

Answer: A

NEW QUESTION 36
Which of the following has the greatest effect on the efficiency of an audit?

• A. The adequacy of preliminary survey information.
• B. The method and amount of supporting detail used for the audit report.
• C. The organization and content of workpapers.
• D. The complexity of deficiency findings.

Answer: A

Explanation:
Section: Volume E

NEW QUESTION 37
An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department?
1. The AIC should notify HR management when the draft audit plan is being developed, as a courtesy.
2. The AIC should notify HR management before the planning stage begins.
3. The AIC should schedule formal status meetings with HR management at the start of the engagement.
4. The AIC should finalize the scope of the engagement before communicating with HR management.

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

Answer: D

Explanation:
Section: Volume E

NEW QUESTION 38
Which of the following factors would increase the confidence level in a variables sampling plan?
1. A larger sample size.
2. A stratified sample.
3. A larger standard deviation.

• A. I, II, and III
• B. I and III only
• C. I and II only
• D. II and III only

Answer: C

NEW QUESTION 39
An internal auditor s testing tor proper authorization of contracts and finds that the rate of deviations discovered in the sample is equal to the tolerable deviation rate. When of the following is the most appropriate conclusion for the internal auditor to make based on this result?

• A. The internal auditor concludes that management may be placing undue reliance on me specified control
• B. The internal auditor concludes that the specified control is more effective than it really is.
• C. The internal auditor concludes that the specified control is acceptably effective
• D. The internal auditor concludes that additional testing will be required to evaluate the specified control

Answer: C

NEW QUESTION 40
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