QUESTION: 65

An organization's sales professionals are potentially abusing the use of cellular phones, resulting in an alarming increase in telephone expenses. Which of the following controls
is least likely to curb this abuse?

Developing periodic reports to management that show type, length, and number of calls per sales professional, with related totals and comparisons.
Requiring sales professionals to pay monthly cellular phone bills and subsequently submit only business calls for reimbursement using an expense report process.
Requiring sales managers to approve monthly bills prior to payment, explain budget variances, and explain increases from previous periods.
Requiring authorization of the cellular phone bill payment by the manager of the telecommunications department.

Answer(s): D

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QUESTION: 66

In advance of a preliminary survey, a chief audit executive sends a memorandum and questionnaire to the supervisors of the department to be audited. What is the most likely result of that procedure?

It creates apprehension about the audit engagement.
It involves the engagement client's supervisory personnel in the audit.
It is an uneconomical approach to obtaining information.
It is only useful for audits of distant locations.

Answer(s): B

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QUESTION: 67

During the planning phase of an audit of suspected overbilling on contracts for security services, an auditor should perform all of the following except

Interviewing an official of the security services company to determine the cause of recent increases in billings for services.
Interviewing the manager who requested the audit engagement.
Obtaining a copy of the contract between the two organizations.
Preparing an engagement program.

Answer(s): A

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