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QIA Qualified Internal Auditor Question and Answers

Question # 4

Follow-up activity may be required to ensure that corrective action has taken place for certain findings. The internal audit department's responsibility to perform follow-up activities as required should be defined in the

A.

Internal auditing department's written charter.

B.

Mission statement of the audit committee.

C.

Engagement memo issued prior to each audit assignment.

D.

Purpose statement within applicable audit reports.

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Question # 5

During an interview with a data input clerk to discuss a computerized system used to track employee training requirements and compliance, an auditor identifies a potentially significant weakness in the system.

The auditor should

A.

Not mention the weakness, directly or indirectly, to avoid making the clerk uncomfortable.

B.

Ask indirect questions that will help get more factual information relating to the potential weakness.

C.

Ask the clerk about the weakness and determine immediately if the finding should be reported.

D.

Conduct a second interview after determining whether the weakness actually exists.

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Question # 6

Your assurance firm is auditor of Happy Goods. The audit manager has just become engaged to the managing director’s daughter, who he met through a mutual friend. The managing director owns 51% of the shares in Happy Goods. Which of the threat is not there in this case?

A.

Intimidation threat

B.

Familiarity threat

C.

Self-interest threat

D.

Advocacy threat

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Question # 7

Which of the following is not an activity of internal audit function?

A.

Examining financial and operating information

B.

Review of the economy, efficiency and effectiveness of operations

C.

Review of compliance with laws, regulations and other external requirements

D.

Confirming that the final result (the sum) is correct

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Question # 8

What evidence is appropriate to determine that recorded purchase transactions were valid and at the best price?

A.

Purchase requisitions, journal voucher entries, and bid quotes.

B.

Purchase requisitions, purchase orders, and bid quotes.

C.

Receiving reports, purchase orders, and purchase requisitions.

D.

Purchase orders, receiving reports, and bid quotes.

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Question # 9

An operational audit is being performed to evaluate the productivity of telephone sales representatives relative to last year. The organization sells two similar products, one of which is priced 20% higher than the other. Prices did not change during the two years subject to the audit, and the gross profit percentage is the same for both products. The sales representatives are paid a base salary plus a commission.

Which one of the following items represents the best evidence that the organization’s sales representatives are more productive this year than last year?

A.

The revenue per representative is higher this year than last year.

B.

The number of sales calls is higher this year than last year.

C.

The ratio of the number of new customers to the number of prospects contacted is higher this year than last year.

D.

Unit sales increased at a higher rate this year than last year.

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Question # 10

Which of the following is an example of intimidation threat to independence of the auditor?

A.

The audit firm has been involved in maintaining the accounting records, or undertaking valuations that are incorporated in the financial statements

B.

The audit firm is acting as a legal advocate for the client in litigation

C.

Xenia Taliotis is an influential finance director of Winner Plc

D.

The audit firm is working for long time for its client

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Question # 11

Which of the following activities is not included in determining the audit schedule?

A.

Developing auditprograms.

B.

Assessing risk factors.

C.

Planning workload requirements.

D.

Identifying auditable locations.

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Question # 12

Audits vary in their degree of objectivity. Of the following, which is likely to be the most objective?

A.

Compliance audit of company's overtime policy.

B.

Operational audit of the personnel function hiring and firing procedures.

C.

Performance audit of the marketing department.

D.

Financial control audit over payroll procedures.

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