Internal Auditing and Systems Controls MCQs

?

From a modern internal auditing perspective, which one of the following statements represents the most important benefit of an internal auditing acti...






?

The proper organizational role of internal auditing is to






?

Internal auditing is an assurance and consulting activity. An example of an assurance service is a(n)






?

A charter is one of the more important factors positively affecting the internal audit activitys independence. Which of the following is least likely...






?

The purpose of the internal audit activitys evaluation of the effectiveness of existing risk management processes is to determine that






?

Internal auditing is a dynamic profession. Which of the following best describes the scope of internal auditing as it has developed to date?






?

The authority of the internal audit activity is limited to that granted by






?

Which of the following activities is outside the scope of internal auditing?






?

Directors, management, external auditors, and internal auditors all play important roles in creating proper control processes. Senior management is pr...






?

The chief audit executives responsibility for assessing and reporting on control processes includes






?

An internal auditor fails to discover an employee fraud during an assurance engagement. The non discovery is likely to suggest a violation of internal...






?

Of the following, the primary objective of compliance testing is to determine whether






?

Which of the following is most likely to be regarded as a strength in internal control in a traditional external audit?






?

In evaluating the effectiveness and efficiency with which resources are employed, an internal auditor is responsible for






?

Which of the following best describes the internal audit activitys purpose in evaluating the adequacy of risk management, control, and governance pro...






?

The status of the internal audit activity should be free from the effects of irresponsible policy changes by management. The most effective way to ens...






?

Independence is most likely impaired by an internal auditors






?

Which of the following activities is not presumed to impair the objectivity of an internal auditor? I. Recommending standards of control for a new inf...






?

A certified internal auditor is the chief audit executive for a large city and is planning the engagement work schedule for the next year. The city h...






?

Senior management has requested a compliance audit of the organizations employee benefits package. Which of the following is considered the primary e...






?

Which of the following is most likely to be an element of an effective regulatory compliance program?






?

Which of the following is not a true statement about the relationship between internal auditors and external auditors?






?

In recent years, which two factors have changed the relationship between internal auditors and external auditors so that internal auditors are partner...






?

To improve their efficiency, internal auditors may rely upon the work of external auditors if it is






?

Internal auditors may provide consulting services that add value and improve an organizations operations. The performance of these services






?

Which of the following statements is true?






?

Which type of engagement focuses on operations and how effectively and efficiently the organizational units affected will cooperate?






?

Which type of engagement attempts to measure the accomplishment and relative success of the undertaking?






?

Which of the following issues need not be addressed by internal auditors when performing a privacy engagement?






?

Which method of evaluating internal controls during the preliminary review provides the auditor with the best visual grasp of a system and a means for...






?

The personnel department receives an edit listing of payroll changes processed at every payroll cycle. If it does not verify the changes processed, th...






?

An internal auditor would trace copies of sales invoices to shipping documents in order to determine that






?

After noting some red flags, an internal auditor has an increased awareness that fraud may be present. Which of the following best describes the inter...






?

An internal auditor discovered an error in a receivable due from a major stockholder. The receivables balance accounts for less than 1% of the compan...






?

In the performance of an internal audit, audit risk is best defined as the risk that an auditor






?

Which of the following statements is(are) correct regarding the deterrence of fraud? I. The primary means of deterring fraud is through an effective c...






?

An internal auditor who suspects fraud should






?

During an engagement to review payments under a construction contract with a local firm, the internal auditor found a recurring monthly reimbursement ...






?

The chief audit executive uncovers a significant fraudulent activity that appears to involve the executive vice president to whom the CAE reports. Whi...






?

Which of the following policies is most likely to result in an environment conducive to the occurrence of fraud?






?

Internal auditors are responsible for reporting fraud to senior management and the board when






?

An internal auditor is interviewing three individuals, one of whom is suspected of committing a fraud. Which of the following is the least effective i...






?

The objectives of a functional audit could involve evaluating the companys






?

The primary difference between operational engagements and financial engagements is that, in the former, the internal auditors






?

The chief executive officer wants to know whether the purchasing function is properly meeting its charge to purchase the right materials at the right...






?

During an operational engagement, the internal auditors compare the current staffing of a department with established industry standards to






?

An operational engagement relating to the production function includes a procedure to compare actual costs with standard costs. The purpose of this en...






?

A determination of cost saving is most likely to be an objective of a(n)






?

During an operational audit, an auditor compares the inventory turnover rate of a subsidiary with established industry standards in order to






?

An operational audit report that deals with the scrap disposal function in a manufacturing company should address






?

An engagement performed at an organizations payroll department has revealed various control weaknesses. These weaknesses along with recommendations f...






?

Which of the following individuals normally would not receive an internal auditing report related to a review of the purchasing cycle?






?

The internal auditing department has just completed an audit report that outlines several deficiencies found in the companys product distribution cha...






?

The primary reason for having written formal internal audit reports is to






?

Which one of the following forms of audit is most likely to involve a review of an entitys performance of specific activities in comparison to organ...






?

If a corporation may be violating federal and state laws governing environmental concerns, which one of the following types of audit will best assist...






?

Which one of the following types of audits would be most likely to focus on objectives related to the economic and efficient use of resources?






?

When an auditor expresses an opinion as to the efficiency and effectiveness of an entitys activities and makes recommendations for improvements, the...






?

In the practice of internal auditing, the auditors must consider the following responsibilities: ? Be alert to the possibility of intentional wrongdoi...






?

In the practice of internal auditing, auditors should identify conditions such as ? Underutilized facilities, ? Procedures which are not cost justifie...






?

An external auditors primary consideration when assessing a companys internal control structure policies and procedures is whether they






?

Which one of the following statements most accurately explains the difference between the internal audit department’s responsibilities in reviewing ...






?

Accounting control should provide reasonable assurance about the achievement of managements objectives. The concept of internal controls providing r...






?

In a compliance audit, the internal auditor is most likely to






?

Which one of the following statements best describes the objective of an operational audit?






?

Which one of the following best represents an example of information that internal auditors should report to the board of directors?






?

When determining which controls to audit, an internal auditor should focus primarily on the relevance of those controls to the






?

In order to achieve independence, the internal audit function should






?

Which of the following is not a threat to information systems?






?

Data processed by a computer system are usually transferred to some form of output medium for storage. However, the presence of computerized output do...






?

In the organization of the information systems function, the most important segregation of duties is






?

To properly control access to accounting database files, the database administrator should ensure that database system features are in place to permit






?

Data input validation routines include






?

An accounting system identification code that uses a sum-of-digits check digit will detect all of the following errors except






?

In order to prevent, detect and correct errors and unauthorized tampering, a payroll system should have adequate controls. The best set of controls fo...






?

An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the purchase order number. The best syste...






?

Which one of the following statements concerning concurrent auditing techniques is false?






?

In auditing computer-based systems, the integrated test facility (ITF)






?

A company makes snapshot copies of some often-used data files and makes them available on the server. Authorized users can then download data subsets...






?

The most critical aspect of separation of duties within information systems is between






?

Which of the following is an example of an input control?






?

Which one of the following input validation routines is not likely to be appropriate in a real-time operation?






?

The online data entry control called preformatting is






?

Which one of the following represents a lack of internal control in a computer-based system?






?

Edit checks in a computerized accounting system






?

The use of a generalized audit software package






?

Which one of the following is the best reason for developing a computer security plan?






?

An online data entry technique that can be employed when inexperienced personnel enter data is the use of






?

Routines that use the computer to check the validity and accuracy of transaction data during input are called






?

An example of an internal check is






?

A control designed to catch errors at the point of data entry is






?

Program documentation is a control designed primarily to ensure that






?

Compatibility tests are sometimes employed to determine whether an acceptable user is allowed to proceed. In order to perform compatibility tests, th...






?

Whether or not a real-time program contains adequate controls is most effectively determined by the use of






?

The most critical aspect of the separation of duties within a mainframe information systems environment is between






?

Control procedures over accounting information systems are referred to as general controls or application controls. The primary objective of applicati...






?

A company employing an online computer system has terminals located in all operating departments for inquiry and updating purposes. Many of the compan...






?

In entering the billing address for a new client in Emil Companys computerized database, a clerk erroneously entered a nonexistent zip code. As a re...






?

Turnaround documents






?

An advantage of having a computer maintain an automated error log in conjunction with computer edit programs is that