1.6.1 Which one of the following is not normally a function of the inventory cycle of a wholesale company?

A timekeeping in respect of warehouse personnel

B receiving goods into the warehouse from the receiving bay

C the safekeeping of inventory in the warehouse

D the authorisation of purchase requisitions sent to the buying department

1.6.2 An internal auditor has set the engagement (audit) objective of identifying the existence of personality conflicts that are detrimental to productivity. Which one of the following engagement techniques will best meet this objective?

A the inspection of documents

B observation

C inquiry

D analytical review

1.6.3 An internal auditor has set the engagement objective of determining whether mailroom staff are fully utilised. Which one of the following engagement techniques will best meet this objective?

A the inspection of documents

B observation

C inquiry

D analytical review

1.6.4 Which one of the following statements describes an internal control questionnaire?

A It provides detailed information regarding the substance of the control system.

B It takes less of the engagement client's time to complete than other control evaluation methods.

C It requires that the internal auditor administer it properly.

D It provides indirect information that might need corroboration.

1.6.5 Rihanna Mda, the inventory controller, has "read access" to the inventory master file but no "write access". This control would be categorised as ____ .

A preventative application control

B detective general control

C detective application control

D None of the above

1.6.6 If an auditor assesses that the risk of a client including fictitious inventory is high, he/she is likely to pay particular attention to further audit engagement procedures that provide evidence relating to ________ .

A the completeness of inventory

B the accuracy, valuation and allocation of inventory

C the existence of inventory

D the rights to inventory

1.6.7 Which one of the following engagement objectives will be accomplished by tracing a sample of accounts receivable debit entries to customer invoices and related shipping documents?

A Sales are properly recorded.

B Sales are invoiced at the correct prices.

C Accounts receivable represent valid credit sales.

D Customer credit is approved.

1.6.8 Which one of the following statements about control self-assessment (CSA) is false?

A CSA is usually an informal and undocumented process.

B In its purest form, CSA integrates business objectives and risks with control processes.

C CSA is also known as control/risk self-assessment.

D Most CSA programmes that are implemented share some key features and goals.