Questions and Answers of Contemporary Auditing

Your communication approach should stay the same at all points of the audit.
The most important aspect of facilitating isa. Setting the foundation by creating a proper agenda.b. Focusing on how to bring together of diverse backgrounds, interests, and capabilities.c. Making
It’s important to talk to the people about something other than the audit.a. True—this leads to mutual trust and a camaraderie based on real feelings.b. False—work is work—everything should
Since you are the auditor, it is your responsibility to establish the relationship.a. True—I am initiating the project, and I can set the tone for the next few months.b. False—audit requires
It’s right to “judge a book by its cover.”a. Never, we must give people time to display themselves.b. It doesn’t matter if it’s right—it happens, and we need to make sure we reached the
When leading a multigenerational team, focus ona. Developing skills in those of your generation first.b. Teaming different generations to leverage strengths.c. Accommodating each team’s preferences
It is better to be a leader than a manager.a. True—in general, leaders are forward-thinking and managers maintain the status quo.b. False—both are needed in a successful organization.
You should provide feedback as soon as an undesirable behavior occurs to prevent repetition.a. True—this avoids repetition of the behavior and quick correction.b. False—individuals need time to
The acronym TACT stands fora. Tactful Always Considering Ties.b. Tell Affect Change Trade-off.c. Talk About Change Timely.
Effective teams (circle all that apply)a. Share common values and goals.b. Have strong, top-down leadership.c. Follow a consistent and logical methodology.d. All of the above.
When preparing a meeting agenda, less important issues shoulda. Be excluded because the risk is insignificant.b. Go at the top of the agenda so that they don’t get eclipsed by the bigger items.c.
Self-management involvesa. Determining the three or four things that are most important to you.b. Making time to reflect on your personal needs and goals.c. Making time to reflect on your current
Critical thinking is not crucial if you are not leading an audit.a. Trueb. False
Executive presence is about the image we portray.a. Trueb. False—it also includes innate qualities like knowledge and intelligence.
An effectively written audit report shoulda. Summarize the contents of control evaluations.b. Describe all test results.c. Trigger actions that resolve the issues raised.
When identifying issues, avoid discussing them with the area or process’ management.a. True—discussing may slant issue identification.b. False—this discussion will help determine the cause of
Well-written audit issues must containa. Condition.b. Cause.c. Criteria.d. Consequence.e. Corrective actions.f. All of the above.
An issue isa. A description of what you found.b. A description of control weakness identifying the root cause of the problem.c. A description of the effect or consequence.
I should pay the most attention to writinga. When all issues have been identified and the testing documentation is compiled.b. Starting with the first workpaper I draft.c. When drafting the final
Summary writing isa. The expression of opinions and ideas based on review and analysis.b. Documenting the information obtained.c. Filling out all fields in a template.
An isolated incident isa. The same as an exception.b. An aberration that is infrequent, a one-off, or insignificant.c. An aberration or deviation that is systemic, widespread, or material.
Regardless of how many times the control is performed and the population size, it is best to pick 30–40 items or the most possible.a. Trueb. False
Substantive testing is never used.a. Trueb. False
Sampling is a mathematically derived testing procedure that will enable you to quantify the sampling risk.a. Trueb. False
The first step when developing control tests for operating effectiveness isa. Selecting the controls to be tested.b. Gaining an understanding of the control design.c. Determining test objective.d.
When determining a testing approach, you cana. Test the entire population.b. Focus on high-risk areas.c. Use sampling.d. All of the above.
The term controls encompassesa. Control environmental elements.b. Control activities.c. Monitoring.d. A and B.e. All of the above.
As a general principle, the higher the risk, the more critical it is to have control activities in place and functioning.a. Trueb. False
When assessing risks, you should consider the effect of controls that are in place.a. Trueb. False
Understanding the risk’s root causea. Is important because it will make it easier to identify the types of controls that are necessary to prevent or detect and correct the risk should it occur.b.
Step 1 in identifying risk according to the Risk Mental Model is toa. Ask, How does management control the risk?b. Ask, What could go wrong to threaten the business, function, or process objective?c.
A synonym for “risk event” isa. Risk.b. Cause.c. Impact.
The data you need to plan an audit will only come from interviewing process owners, for example, senior local management and other informed parties.a. Trueb. False
To gain perspective of the area you need to audit, you must focus ona. The business area overall.b. The external environment.c. The internal environment.d. All of the above.
The steps in the Critical Linkage™ area. Interview, document, test, corrective action.b. Objectives, risks, controls, corrective action.c. Plan, discuss, test, report.
Audit planninga. Is the act of documenting all the process steps.b. Comprises the activities needed to acquire an understanding of the area under review, set the audit’s objectives and scope,
A strength can become a weakness whena. It is not used enough.b. It is overused.c. It clashes with others’ abilities.
To achieve sustained change, you must target the right behaviors:a. Trueb. False
The three types of change area. Macro, micro, and organizational.b. Situational, focused, and widespread.c. Personal, business, and foreign.
If you want sustained results, you shoulda. Work on all your desired changes at once.b. Work on changing one or two behaviors at a time.c. Hire a professional coach.
A competency is mostly based ona. Innate ability.b. Skills acquired through training.c. Skills developed from experience.
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