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NEW QUESTION 52
Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

• A. Observation and inspection of inventory.
• B. Suppliers' reports of over shipments.
• C. Warehouse receiving logs.
• D. Purchase requisitions and purchase orders.

Answer: C

Explanation:
Section: Volume E

NEW QUESTION 53
Some of a company's payroll transactions were batch posted to the payroll file but were not uploaded correctly to the general ledger file on the mainframe. The best control to detect this type of error would be.

• A. Reconciliation of paychecks to the bank account.
• B. Appropriate segregation of duties for batch approval.
• C. Edit controls on the payroll file.
• D. Validation of hash totals.

Answer: D

Explanation:
Section: Volume B

NEW QUESTION 54
The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

• A. The CAE may self-review his work, provided he discloses this practice in the final report.
• B. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.
• C. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
• D. The CAE's work may be reviewed by any other experienced staff member within the IAA.

Answer: C

NEW QUESTION 55
A code of business conduct provides?

• A. A passive method of fraud deterrence.
• B. A program to anonymously report irregularities to authorities.
• C. A fraud avoidance plan that does not explicitly describe punishments for violations.
• D. An alternative to "tone at the top" programs.

Answer: A

NEW QUESTION 56
......

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