IQN QIA Qualified Internal Auditor Exam Practice Test

The audit firm has been involved in maintaining the accounting records, or undertaking valuations that are incorporated in the financial statements

The audit firm is acting as a legal advocate for the client in litigation

Xenia Taliotis is an influential finance director of Winner Plc

The audit firm is working for long time for its client

Apply the retail method of inventory valuation.

Compare physical inventory counts to perpetual records.

Develop inventory estimates based on the gross profit percentage method.

Analyzecurrent and previous inventory turnover rates.

Intentional deception.

Taking unfair or dishonest advantage.

Perpetration for the benefit or detriment of theorganization.

Negligence on the part of executive management.

A decrease in population standard deviation.

An increase in population standard deviation.

A decrease in required sample size

An increase in required sample size

A credit approval document supported by the customer's audited financial statements.

A copy of a sales invoice to the customer in the auditee's records.

A positive confirmation received directly from the customer.

A customer's purchase order in the auditee's records related to the credit sale.

Independence, objectivity, and nature of the work

Independence, communication of findings, and the resolution of problems affecting the risks accepted by management

Independence, objectivity and proficiency

Engagement planning, engagement execution, and progress monitoring

Reviewing the systems flowchart.

Performing a "walk-through" of the processing and obtaining copies of all documents used.

Reviewing the programming flowchart for evidence of control procedures placed into the computer programs.

Interviewing the treasurer.

Imposition of corrective measures.

Participation with auditees to improve methods.

Fraud investigation.

Implementation of policies and procedures.

Financial statements are presented in accordance with International Financial Reporting Standards.

Desired benefits are being achieved.

The entity has complied with laws and regulations.

Resources are managed economically and efficiently.

The auditor notes strong indicators of a specific fraud involving this account.

The company has relatively stable operations that have not changed much over the past year.

The auditor would like to identify large, unusual, or nonrecurring transactions during the year.

The operating expenses vary in relation to other operating expenses, but not in relation to revenue.

Select a random sample of all hourly payroll transactions for the reporting period, re-compute pay and withholding items, and compare the result with that obtained from the service bureau.

Select a stratified sample of all hourly and salaried payroll transactions for an entire reporting period, perform the necessary activities, and then compare the result with that obtained from the service bureau.

Select a discovery sampling of all payroll transactions for an entire reporting period and then follow up on any findings.

Submit a set of test data to the service bureau during an annual audit and compare the service bureau's processing with the auditor's predetermined computations on the same test data.

Shifts some of the responsibilities away from the auditors towards others such as work teams.

Allocated additional responsibilities to internal audit.

Reduces the level of collaboration required between managers and internal auditor.

Allows assessment to be carried out without any internal audit involvement whatsoever, therefore allowing them to focus their attention on other areas of theorganization.