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NEW QUESTION 50
The most effective procedure to verify compliance with a requirement that materials be purchased from the lowest-priced source is to compare:

  • A. Bids obtained for selected purchases with related purchase orders.
  • B. Vendors' current prices with prices listed on related purchase orders.
  • C. Prices paid for selected materials with prices listed on related purchase orders.
  • D. Approved vendor lists with bids obtained for selected purchases.

Answer: A

 

NEW QUESTION 51
When interviewing an individual suspected of fraud, what type of questions would be asked after the introductory questions?

  • A. Assessment questions.
  • B. Admission-seeking questions.
  • C. Informational questions.
  • D. Closing questions.

Answer: C

 

NEW QUESTION 52
A code of ethics within the internal auditing profession is necessary in order to:

  • A. Provide guidance to internal auditors in their service to others.
  • B. Require members of the profession to exhibit loyalty in all matters pertaining to the affairs of their organization.
  • C. Reduce the likelihood that members of the profession will be sued for substandard work.
  • D. Ensure that all members of the profession perform at approximately the same level of competence.

Answer: A

 

NEW QUESTION 53
Which of the following events would most likely cause the chief audit executive to consider changing the current year's audit plan?
1. The government announced that new regulatory requirements will be introduced in the coming years which may significantly impact the organization's primary product.
2. A major competitor unexpectedly introduced a new model at a lower price point to compete with the organization's market leading product.
3. The organization announced a new joint venture with a long time corporate partner to introduce a new product with development costs and sales beginning next fiscal year.
4. An equal joint venture partner filed a lawsuit against the organization and requested that the court issue an immediate suspension of future product shipments.

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

Answer: A

 

NEW QUESTION 54
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