1) Developing reminder lists and the initial table of contents for the working papers are among which task?

a) Initial Study

b) Observing

c) Flowcharting

d) Documenting

2) A control question that could be asked on a questionnaire for administration would be

a) How are the entrance and exit of personnel controlled?

b) How are tools inventoried?

c) What extent is TQM being utilized?

d) What provision is made for scheduling and taking cycle inventories?

3) The way an auditor asks questions can affect the success or failure of an interview. The Internal Auditor should not

a) Load the question by requiring a self incriminating reply.

b) Use a tape recorded during the interview.

c) Gather brief notes using a split page approach.

d) Drag out the interview.

4) When internal auditors perceive risks, they should search out the controls designed to protect against them. What type of control would an Internal Auditor use in order to determine if a terminated employee is still in the payroll system?

a) Periodic floor checks of employees on payroll.

b) Reconciliation of hours between time cards and attendance logs.

c) Witnessing of check distributions

d) None of the above.

5) An audit objective is to determine whether significant inventories have been correctly stated. An effective procedure would be to

a) Obtain statements from management.

b) Review physical inventories.

c) Flowcharting the inventory cycle.

d) Interviewing personnel.

6) An Internal Auditor is seeking to determine whether such alarm devices are installed and operating. The procedure that would provide assurance of installation and operation would be

a) Reviewing the architects alarm specification documents.

b) Examining invoices for the devices.

c) Observation of the placement of the alarms.

d) Interviewing the plant safety officer.

7) The elements of a strategic plan would include all f the following except for

a) Need for outside resources.

b) Timing of authority.

c) Report presentation.

d) Timing of field work.

8) Operating objectives are set by

a) The Internal Auditor.

b)The Audit Supervisor.

c) The external experts.

d) Management.

9) Supplies are transferred from inventory to a department that ordered the supplies. An audit objective is to evaluate controls over the transfer of accountability for those supplies. The most appropriate document would be:

a) Shipping lists.

b) Vendor invoices.

c) Requisition forms.

d) Receiving reports.

10) To make a meaningful examination, an auditor can locate standards in all of the following areas except for

a) Budgets.

b)Trade practices.

c) Job instructions.

d) Objective conclusions.

11) A standardized internal audit program would NOT be appropriate for the following situation:

a) A stable operating environment undergoing only minimal changes.

b) A complex or changing operating environment.

c) Multiple locations with similar operations.

d) Subsequent inventory audits performed at same location.

12) The objective of audit testing is to determine

a) Validity.

b) Accuracy.

c) Competence of controls.

d) All of the above are correct.