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NEW QUESTION 47
Which of the following are advantages of flowcharts over internal control questionnaires''
1 Flowcharts reduce the need to test whether employees are observing internal control processes
2 Flowcharts provide a visual depiction of the processes in the area under review 3. Flowcharts identify and prioritize internal control design weaknesses.
4 Flowcharts highlight the control points to help internal auditors evaluate control design

• A. 1 and 3 only
• B. 2 and 4 only.
• C. 1.2. and 3 only
• D. 2. 3 and 4 only

Answer: D

NEW QUESTION 48
An auditor is scheduled to audit payroll controls for a company which has recently outsourced its processing to an information service bureau. What action should the auditor take, considering the outsourcing decision?

• A. Review the controls over payroll in both the company and the service bureau.
• B. Cancel the engagement because the processing is being performed outside of the organization.
• C. Review only the controls over payments to the service bureau based on the contract.
• D. Review only the company's controls over data sent to and received from the service bureau.

Answer: A

Explanation:
Section: Volume A

NEW QUESTION 49
Which of the following describes an internal auditor's responsibilities to include audit procedures to detect fraud in audits of a multinational organization?

• A. Internal auditors do not have any specific responsibilities with respect to including fraud-related audit procedures.
• B. 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.
• C. If significant control weaknesses are detected, additional tests should be directed toward other indicators of fraud.
• D. Proper audit procedures, when carried out with due professional care, will guarantee that fraud, if present, will be detected.

Answer: C

NEW QUESTION 50
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