Following list of possible deviations from prescribed controls has been recorded in the internal auditor's working papers: INVOICE 1527: Prescribed control: Credit department authorization of credit. Finding:Evidence of credit department approval of invoice. Amount of invoice exceeds maximum credit limit. INVOICE 1638: Prescribed control: Shipping department verification of agreement of goods shipped with sales order. Finding: No evidence of shipping department verification but invoice agrees with sales order. INVOICE 1864: Prescribed control: Credit department authorization of credit. Finding: Name of one of the authorizers not included on signature list. Auditor investigation disclosed a new hire in credit whose name was inadvertently omitted from the list of authorized signers. Which invoices represent deviation(s) from the prescribed control? Select one: a. All three invoices b. Invoices 1527 and 1638 C. Invoices 1527 and 1864 d. Invoices 1638 and 1864 During the review of financial records, internal auditors request the auditee to provide a sales report from November 2017 to January 2018 with the records of all the sales and credit memos issued during these period. Which of the follows is most likely the auditor's intention here? Select one: a. To investigate potential overstatement of credits in 2017 b. To investigate potential overstatement of sales in 2017 c. To investigate potential understatement of sales in 2018 d. To investigate potential understatement of expenses in 2018 The audit committee can serve several important purposes, some of which directly benefit internal auditing. The most significant and foremost benefit provided by the audit committee to the internal auditor is Select one: a. Reviewing annual audit plans and reports b. Approving annual audit scheduling and plans c. Reviewing copies of the internal control procedures for selected company operations d. Protecting the independence of the internal auditor, especially from undue management influence. In Risk Control Matrix, which of the following is one of the elements the auditor consider and prepare after deciding risk responds from management? Select one: a. Assessing the likelihood and impact of risks b. Risk statement describing each risk C. Testing approach d. Activity or subprocess within key process ABC Clothing is a division of XY Inc. and manufactures machine parts. As an internal auditor for XY Inc., you have been assigned to review ABC's controls over purchasing and have determined that there are a number of controls in place. You have decided to test the operating effectiveness of the following control: vendor invoices are agreed to receiving reports and purchase orders for product, quantity, and price. You also have decided to apply attribute sampling in your tests.Assume that you round the sample size up to the next integral number that you can find on attached sample table. Assume further that you properly tested all sample items and found one item for which there was no purchase order and three with purchase order that was authorized by person without the authority, and that you expect a 3% deviation rate, you can tolerable a deviation rate of 7% in the population, and the acceptable risk of Type Il audit risk is 10%. What is the statistical conclusion of your sample results? Select one: a. The auditor is 90% confident that the true, but unknown, population deviation rate is less than or equal to 6.6% b. The auditor is 95% confident that the true, but unknown, population deviation rate is greater than 9.0% c. The auditor is 90% confident that the true, but unknown, population deviation rate is less than or equal to 5.3% d. The auditor is 90% confident that the true, but unknown, population deviation rate is less than or equal to 7.9%. The risk of employee stealing company's business data using personal USB or wireless networks is Select one: a. Hardware risk b. Selection risk c. Development risk d. Access risk
