CGRC Audit Management 2

Question 1

Which audit sampling method selects every nth item from a population to achieve representative coverage?

Accepted Answer

Systematic sampling

Answer

Systematic sampling selects items at fixed intervals (every nth item) from the population, providing structured coverage.

Question 2

An auditor discovers a control deficiency that could lead to material misstatement but has not yet caused one. This is classified as:

Accepted Answer

A significant deficiency

Answer

A significant deficiency is a control deficiency that is less severe than a material weakness but important enough to merit attention.

Question 3

What is the primary purpose of an audit charter?

Accepted Answer

To define the authority, responsibility, and scope of the internal audit function

Answer

An audit charter formally establishes the internal audit function's purpose, authority, and responsibility within the organization.

Question 4

During audit fieldwork, which documentation technique maps a process end-to-end to identify control points and risks?

Accepted Answer

Flowchart

Answer

Flowcharts visually depict process steps and decision points, making it easier to identify where controls exist or are missing.

Question 5

When an auditor relies on work performed by an external specialist, the auditor must:

Accepted Answer

Evaluate the specialist's competence, objectivity, and scope of work

Answer

Auditors must assess a specialist's qualifications, independence, and the appropriateness of their work before relying on it.

CGRC - Certified Governance Risk and Compliance Practice Test