A: more expensive; B: longer;
C: it is difficult to go deeper into a given topic; and D: trainees do not readily remember what they learn in the classroom.
62.Which type of audit evidence is most credible in assessing the likelihood of accounts receivable recovery?
A:Affirmative accounts receivable letter response. B:Negative accounts receivable letter response.
C:Accounts receivable aging sheet. D:Shipping bill.
63.During an audit of a data center, the internal auditor should check for the presence of voltage regulators to ensure
A:Hardware equipment is protected from surge damage.B:The integrity of the system is preserved if mains power is interrupted.
C:Instantaneous power supply is available if the mains power is interrupted.D:Hardware equipment is protected from long-term power fluctuations.
64. A non-profit organization's donations to IJ have been constant for the past three years, and the Audit Committee noted that the organization's Managing Director may be engaged in a scheme to divert some of the donations to other organizations. The Board suspects that the managing director has embezzled a large portion of the contribution and deposited it in other accounts or credited it to another organization through bribery. Which of the following audit procedures would be most effective to detect the existence of this fraud?
A: Using common auditing software, sample donations that have been, but have not been, received and confirm the amount due from the donor.B: Select a sample of all major donors and a statistical sample of other donors for the past three years, and ask the organization or its affiliates to confirm the total amount of donations received.
C:Select a discovery sample of cash receipts, confirm the total amount of donations received from donors, and investigate any discrepancies.D:Apply an analytical review process to compare the amount of donations received by the institution with those received by other similar institutions over the same period of time, and if the amount is unusually small, select a detailed sample of cash receipts and trace them back to the relevant bank statements.
65. The procedure by which an internal auditor is most likely to detect fraud is
A: Identifying and asking about changes in the organization. B: Interrogating the fraudster to find out why the fraud was committed.
C:Establish internal controls to prevent fraud from occurring.D:Archive the computerized operating system programs.
66. Which of the following should not be included in the description of the scope of an audit report?
A:Audit period.B:Audit purpose.
C:Unaudited activities. D:The nature and extent of the audit performed.
67.Define probative audit evidence as
A:Audit evidence that is free from error and bias and faithfully shows what it purports to show.
B:Audit evidence obtained in the course of observing people, assets, and events.
C:Audit evidence obtained in the course of observing people, assets, and events.
D:The nature and extent of the audit performed.
C:Audit evidence complements, and reinforces or confirms, other audit evidence that has been collected.D:Audit evidence proves an indirect fact or set of facts from which other facts can be deduced.
68.A company's production uses two major raw material inputs. The company has to forecast the cost changes of the input materials for the purpose of preparing the production and operating budgets, and the two cost changes are independent of each other. The purchasing department has provided the following probability cost changes/Material 1/Material 2: up 3%/0.3/0.5; up 5%/0.5/0.4; up 10%/0.2/0.1. The probability of a 3% increase in the cost of both Material 1 and Material 2 will be:
A:15% B:40%
C:80% D:20%
69. The internal auditor is attempting to evaluate the potential value impact of an out-of-control program in the sales cycle. Two controls are involved: control A has a 10% probability of failure and control B has a 5% probability of failure. The control procedures are independent of each other, i.e., failure of one control procedure does not affect the other. In evaluating the potential exposure (risk) to the organization, the internal auditor determines that the cost of failure of Control A is $10,000, the cost of failure of Control B is $20,000, and the additional cost of failure of both at the same time is $200,000. If none of the controls are well prepared, the expected cost to the organization is:
A:$1,000 B:$32,250
C:＄2,250 D:＄3,250
70.There has been a strong call from the government's internal auditors to audit whether some people are receiving additional social welfare payments. A common type of benefit fraud is when some people receive more than one benefit, which is usually accomplished by filing multiple applications under multiple names but using the same address. Which of the following computerized auditing tools and techniques would be most effective in confirming the existence of this type of fraud?
A:Tagging and tracing.B:Universal audit software.
C:Holistic testing method.D:Spreadsheet analysis.
71. Behavioral research has demonstrated that most people process information on a continuous basis, and as a result, decision making is often influenced by the "nearest effect," where the most recent information is given disproportionate weight in the decision making process. In auditing, this tendency can be appropriately controlled by measures other than:
A:Require internal auditors to document the audit evidence used to reach audit conclusions and the process of finding the reasons for them. Worker B:Requires supervisors to independently review the results and conclusions.
C:Utilizes an expert system to ensure that all significant information is given appropriate weight. d:Requires that the most important audit steps are performed at the end.
72. Decision makers are often confronted with many options and can only choose one, and they often make decisions in situations of risk or uncertainty, i.e., when they do not have a complete and accurate understanding of the outcome of each option. Which of the following is true?
A:In the case of risk, there is only one potential outcome for each alternative.B:In the case of uncertainty, the first task is to determine the expected value of multiple possible outcomes for each alternative.
C:In the case of risk, decision making relies solely on the decision maker's experience and intuition.D:In the case of uncertainty, the primary task is to establish subjective probabilities for the occurrence of multiple outcomes.
73.Which of the following is the most appropriate evidence that accounts receivable do exist?
A:Affirmative letter return.B:Sales invoice.
C:Acceptance report. D:Bill of lading.
74. all but which is a method of distributing a relational database to multiple servers?
A:Snapshots (making a single copy for distributing the database) B:Replication (creating and maintaining duplicate copies in different locations)
C:Normalization (splitting the database into logical tables for easier handling by the user).
D:Segmentation (splitting the data into parts and distributing them where they are needed).
75.Which of the following should be checked when designing system elements in a top-down development approach?
A:The type of processing system used by the competitor.B:The computer equipment needed for the system.
C:The information managers need for planning and control.D:The controls of the existing system.
76. An internal auditor is assigned to audit a company's payroll control system, the processing of which has recently been outsourced to an information services organization. Considering this outsourcing decision, what action should the internal auditor take
A: Examine the payroll controls in both the company and the service organization B: Examine only the company's controls over the data sent to and received from the service organization
C: Examine only the controls over the payments made to the service organization on the basis of the contract D: Cancel the audit engagement because the control process is being performed by an organization outside the organization. performed by a body outside the organization.
77. Which of the following is true about horizontal flowcharts as compared to vertical flowcharts?
A: It provides more space for textual descriptions parallel to the symbols. b: It focuses more on task assignment and independent checking of performance. c: It provides more space for textual descriptions parallel to the symbols. d: It provides more space for textual descriptions parallel to the symbols.
C:It is usually longer.D:Departmental lines do not cross each other.
78.A flowchart of process activities and controls can provide
A:information about where fraud occurs B:information about the extent to which fraud has occurred in the past.
C:Signs in the program about where fraud has occurred.D:No information relevant to fraud prevention.
79.An organization wants to improve its performance metrics for a new business industry. Which of the following types of benchmarking methods is most likely to provide useful information for this purpose?
A:Functional B:Competitive.
C:General D:Internal
80.The purpose of including audit recommendations in the audit report is to
A:Provide management with options for resolving audit findings B:Ensure that problems exist that can be resolved in the manner recommended by the auditor
C:Reduce the time required to correct audit findings.D:Ensure that the audit findings can be resolved regardless of the cost.