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Certified Internal Auditor Exam Questions 351–355 (page: 72)

Time series forecasting models can include which of the following components?

I). Trends.
II). Seasonal variations.
III). Cycles.

As an audit technique, observation is

I). Limited because individuals may react differently when being observed.
II). More persuasive for the completeness assertion than it is for the existence assertion when testing financial statement balances.
III). Effective in providing evidence on how the company's processes differ from those specified by written policies.

An internal auditor has been asked to provide a report to an external party for which internal audit services were provided. Which of the following should be considered prior to complying with the request?

I). Need for a written agreement concerning the information to be reported.
II). Limitations on the distribution or sharing of the information provided.
III). Nature of the report, including conclusions, recommendations, and status of findings.
IV). Appropriateness of revising or editing the report to make it more suitable for dissemination outside the organization.

Which of the following tests must an internal auditor perform in order to ensure that inbound electronic data interchange (EDI) transactions are received and translated accurately?

I). Computerized tests to assess transaction reasonableness and validity.
II). Review of log books to ensure that transactions are logged upon receipt.
III). Edit checks to identify unusual transactions.
IV). Verification of limitations on the authority of users to initiate specific EDI transactions.

An internal auditor downloaded all database records pertaining to payables, purchases, production, inventory, and receivables, and wrote a program to verify that All payables had an authorizing purchase order.
All production materials were legitimate inventory items.
All receivables derived from production.
What is the internal auditor testing?