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1. Which of the following would best support the overall risk assessment?
A) Detailed organizational charts to understand roles and reporting lines in the area under review.
B) Process narratives and process maps with descriptions of risks and controls.
C) Policies and process procedures provided by the manager of the process under review.
2. Which of the following is an advantage of communicating audit observations as they are identified?
A) The auditor may receive additional pertinent documentation or other relevant information
B) The auditor may be able to plan more efficiently next year's audit
C) The auditor may not need to communicate the final results of the audit to the board
3. Information collected and documented in audit workpapers should be sufficient to:
A) Allow the work to be repeated and achieve the same results that logically lead to the same conclusion.
B) Support engagement observations and be consistent with engagement objectives.
C) Confirm that management has effectively implemented recommended actions to resolve all identified control weaknesses.
4. Which of the following best demonstrates that appropriate and sufficient resources were allocated to an audit engagement to achieve its objectives?
A) Post-engagement survey of management of the audited area.
B) Approved engagement work program.
C) Staff skills audit.
5. Which of the following is a purpose of an embedded audit module?
A) It identifies program code that may have been inserted for unauthorized purposes.
B) It enables continuous monitoring of transaction processing.
C) It verifies the correctness of account balances on a master file.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: B |
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