FREE Certified Internal Auditor MCQ Questions and Answers
Which of the following claims about work paper reviews is accurate?
Explanation:
The statement "Work papers should be initialled and dated by the reviewer as evidence of supervisory review" is true regarding the review of work papers.
Which of the following should an internal auditor look out for during an audit of the award of a significant contract?
Explanation:
When auditing the award of a major contract, a red flag for a bidding fraud scheme that an internal auditor should suspect is if the material contract requirements are different on the actual contract than on the request for proposal (RFP) or request for quotation (RFQ).
When an auditor suspects that an unnamed employee is submitting and approving bills for payment, which of the following processes would be most useful in supplying additional proof?
Explanation:
The procedure that would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment is to use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. The auditor should then select a sample of those invoices and trace them to supporting documents such as receiving reports.
Which of the following categories of audit evidence best exemplifies the ability to establish a fact without relying on supporting assumptions?
Explanation:
Direct evidence is the type of audit evidence best defined as proof of a fact without reliance on presumptions for support.
Which of the following statements about individual versus collective decision-making is accurate?
Explanation:
Individual decision-making is often considered to be more conservative compared to group decision-making.
Which of the following is a benefit that computer-assisted audit techniques give to the audit process?
Explanation:
Computer-assisted audit techniques (CAATs) benefit the audit process because they allow auditors to analyze large amounts of data.
A chief audit executive's main concern when reading a report written by an internal auditor who has a friend who works in the sector being audited would be to guarantee which of the following?
Explanation:
When reviewing a report prepared by an internal auditor with a friend employed in the audited area, a chief audit executive's primary focus is ensuring that the word is fair, impartial, and unbiased. The chief audit executive should carefully review the information to ensure that it presents a complete and accurate picture of the audit findings and is not influenced by any personal relationships or biases.