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Question: 1

An auditor, assigned to review a complex computer system that had undergone a few system changes, obtained the prior flowchart used. Which of the following would be the most efficient way to document the changes?

  1. Create a new flowchart reflecting the system changes.
  2. Prepare a detailed narrative instead of a flowchart to describe the updated system.
  3. Add a detailed narrative to the prior flowchart to describe the changes to the system.
  4. Make the necessary adjustments on a copy of the prior flowchart and save as a new version.


Answer: D

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Question: 3

Which of the following is typically not a reason for committing financial statement fraud?

  1. To dispel negative market perception.
  2. To disguise a duplicate payment to a vendor.
  3. To obtain more favorable terms on financing.
  4. To receive performance related bonuses.


Answer: B

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Question: 5

Which of the following sampling plans should an internal auditor use to estimate the number of units in a certain class of inventory without counting each item?

  1. Attributes sampling.
  2. Discovery sampling.
  3. Variables sampling.
  4. Stop or go sampling.


Answer: C

Question: 5

Which of the following sampling plans should an internal auditor use to estimate the number of units in a certain class of inventory without counting each item?

  1. Attributes sampling.
  2. Discovery sampling.
  3. Variables sampling.
  4. Stop or go sampling.


Answer: C