QUESTION: 41 Topic 1, Volume A

View Related Case Study

Which of the following characteristics could indicate high risk?

Management decisions are made by a committee of mid to higher level management personnel.
The company is not in a rapidly growing industry.
The company's profitability is lower than the industry norm.
Management turnover has been very low.

Answer(s): C

Reveal Solution Next Question

QUESTION: 42 Topic 1, Volume A

View Related Case Study

An auditor is using audit software to check inventory accuracy. Which of the following would be an indicator of poor input edit controls?

Negative quantities on hand.
Total dollar values of zero for some parts.
Alpha characters in the field for order lead time.
Reorder levels set too high.

Answer(s): C

Reveal Solution Next Question

QUESTION: 43 Topic 1, Volume A

View Related Case Study

Two individuals are being considered for an audit team that is to perform a highly technical review.
Which of the following situations would preclude selection of the individual for the audit due to an objectivity concern?

Person A is a member of the internal audit staff and has the required technical skills. Person A participated in a controls review of the system to be audited when it was being developed.
II. Person B is a technical specialist who understands the audit area but is not a member of the internal audit staff. Although person B has personal credibility in the information systems department to be audited, person B works for another department in the organization.
Ionly
IIonly
Both I and II.
Neither I nor II.

Answer(s): D

Reveal Solution Next Question