Question 1

Which of the following is not a benefit of using information technology in solving audit problems?

Options :

A : It helps reduce audit risk.

B : It improves the timeliness of the audit engagement

C : It increases audit opportunities.

D : It improves the auditor-s judgment.

Answer: D

Question 2

Which of the following would provide the best evidence of compliance with an airline's standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

Options :

A : Vendor fuel invoices that have been reconciled to inventory records.

B : Time cards completed by aircraft cleaning and fueling crews.

C : Observation of selected aircraft while they are being refueled and cleaned.

D : Comparison of the standard hourly labor costs for cleaning and fueling personnel with actual labor charges.

Answer: C

Question 3

Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

Options :

A : The risk of collusion between parties.

B : The risk of falsified reconciliations.

C : The risk of low-liquidity inventory.

Answer: B

Question 4

A sales clerk received cash from a customer and pocketed the proceeds. He hid the act by not recording the cash receipt in the system. This is an example of which of the following types of fraud?

Options :

A : Skimming

B : Larceny

C : Lapping

D : Kiting

Answer: A

Question 5

Which of the following are appropriate ways to obtain continuous professional education?1. Instructing at a local IIA training event.2. Attending internal audit conferences and seminars.3. Practicing specialized audit and consulting work.4. Participating in research projects in internal auditing.

Options :

A : 1 and 3 only

B : 1 and 2 only

C : 3 and 4 only

D : 1, 2, and 4 only

Answer: D

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