Which of the following factors is least essential to a successful control self-assessment workshop?

A.

Voting technology.

B.

Facilitation training.

C.

Prior planning.

D.

Group dynamics.

Which of the following would not be characteristic of control self-assessment implemented by an
audit department?

A.

An auditor usually facilitates the discussion during the workshop phase while another records
comments for subsequent use.

B.

Auditors and business-unit employees work as a team.

C.

Auditors perform traditional audit tests to identify control weaknesses.

D.

Participants discuss the control weaknesses that hinder the achievement of objectives

Which of the following is an advantage of control self-assessment (CSA) over conventional
auditing techniques?

A.

CSA evaluates control activities and human resource practices.

B.

CSA provides assurance about whether business objectives will be met.

C.

CSA facilitates obtaining input from subject-matter experts efficiently.

D.

CSA provides assurance that action will be taken to improve deficiencies.

During which of the following systems development stages would it be most useful for an internal
auditor to be involved?

A.

Coding and testing.

B.

User acceptance and post-implementation.

C.

Design and implementation.

D.

Testing and user acceptance.

An auditor decides to vouch a sample of ledger entries back to their original documentation. In
terms of whether all transactions had been recorded, this test would bE.

A.

Relevant to the completeness objective.

B.

Irrelevant to the completeness objective.

C.

A more timely test of completeness than evidence from interviews.

D.

 A more biased test of completeness than evidence from interviews.

All of the following tools are employed to control large-scale projects except:

A.

Program evaluation and review technique (PERT).

B.

Critical path method.

C.

Statistical process control.

D.

Gantt charts.

An audit of an organization's claims department determined that a large number of duplicate
payments had been issued due to problems in the claims processing system. During the exit
conference, the vice president of the claims department informed the auditors that attempts to
recover the duplicate payments would be initiated immediately and that the claims processing
system would be enhanced within six months to correct the problems. Based on this response, the
chief audit executive should:

A.

Adjust the scope of the next regularly scheduled audit to assess controls within the claims
processing system.

B.

Discuss the findings with the audit committee and ask the committee to determine the
appropriate follow-up action.

C.

Schedule a follow-up engagement within six months to assess the status of corrective action.

D.

Monitor the status of corrective action and schedule a follow-up engagement when appropriate

An audit of a company's accounts payable found that the individuals responsible for maintaining
the vendor master file could also enter vendor invoices into the accounts payable system. During
the exit conference, management agreed to correct this problem. When performing a follow-up
engagement of accounts payable, the auditor should expect to find that management has:

A.

Transferred the individuals who maintained the vendor master file to another department to
ensure that responsibilities are appropriately segregated.

B.

Compared the vendor and employee master files to determine if any unauthorized vendors
have been added to the vendor master file.

C.

Changed the access control system to prevent employees from both entering invoices and
approving payments.

D.

Modified the accounts payable system to prevent individuals who maintain the vendor master
file from entering invoices

What is the primary factor that determines the depth and breadth of audit follow-up?

A.

The engagement client's written response to the audit findings.

B.

The auditor's assessment of risk associated with the audit findings.

C.

 The auditor's assessment of personnel responsible for correcting audit findings.

D.

 The availability of audit personnel and financial resources.

At the conclusion of an audit of an organization's treasury department, a report was issued to the
treasurer, chief financial officer, president, and board. Because of the sensitivity of some findings, a follow-up review was performed. The auditor should provide the report of follow-up findings to
the.
I. Treasurer.
II. Chief financial officer.
III. President.
IV. Board.

A.

I and II only

B.

III and IV only

C.

I, II, and III only

D.

I, II, III, and IV.