Listen

To be sufficient, audit evidence should be:

Question 31 options:

	Based on references that are considered reliable
	Directly related to the engagement observation and include all of the elements of an engagement observation.
	Well documented and cross-referenced in the working papers
	Convincing enough for a prudent person to reach the same conclusion as the auditor.

Question 32 (1 point)

Listen

Which of the following represents the most competent evidence that trade receivables actually exist?

Question 32 options:

	Sales invoices.
	Positive confirmations
	Bill of lading
	Receiving reports

Question 33 (1 point)

Listen

When interviewing an individual suspected of a fraud, the interviewer should:

Question 33 options:

	Lock the door to ensure the suspect cannot run away.
	Pay attention to the wording choices of the suspect
	Ask if the suspect committed the fraud
	Ensure the suspect's supervisor is present during the interview.

Question 34 (1 point)

Listen

An adequate system of internal controls is most likely to detect an irregularity perpetrated by a:

Question 34 options:

	Group of employees in collusion.
	Single employee.
	Group of managers in collusion.
	Single manager.

Question 35 (1 point)

Listen

If an internal auditor's preliminary evaluation of internal controls results in an observation that controls may be inadequate, the next step would be to:

Question 35 options:

	Expand audit work before the preparation of audit report.
	Prepare a flowchart depicting the internal control system
	Note an exception in the engagement final communication if losses have occurred.
	implement the desired controls.

Question 36 (1 point)

Listen

Which of the following fraudulent entries is most likely to be made to conceal the theft of an asset?

Question 36 options:

	Debit expense and credit the asset.
	Debit revenue and credit the asset.
	Debit the asset and credit another asset account.
	debit another asset account and credit the asset.

Question 37 (1 point)

Listen

Which of the following will not be considered a primary objective of a meeting with auditee management before final audit report is prepared?

Question 37 options:

	To discuss the engagement observations and recommendations.
	To resolve conflicts.
	To identify concerns for future audit engagements.
	To identify management's actions and responses to the engagement observations and recommendations.

Question 38 (1 point)

Listen

Which of the following is an appropriate statement of an audit engagement objective?

Question 38 options:

	To determine whether inventory stocks are sufficient to meet projected sales
	To observe the physical inventory count.
	To include information about stock-outs in the engagement report.
	To search for the existence of obsolete inventory by computing inventory turnover by product line.

Question 39 (1 point)

Saved

Listen

In a technology related audit assignment, the internal auditor is not expected to:

Question 39 options:

	Keep current with leading-edge technology being considered by their organization.
	Understand the risks and controls associated with current technology.
	Understand how the new technology will affect their organization's processes.
	Have an expertise of an information technology auditor.

Question 40 (1 point)

Saved

Listen

One of the following cannot be seen as part of unique opportunities provided by IT for fraudulent activities:

Question 40 options:

	Information theft though the use of sniffing hardware such as keystroke loggers.
	Scrupulous disposal of IT related wastes
	Illegal access to a system that could lead to data theft, alteration and destruction.
	Increased, complex, IT related crimes.