PROGRESS CHECK CIA PART II UNIT 3 & 4 PT PLN (Persero)

Engagement information is usually considered relevant when it is

• Derived through valid statistical sampling.
• Objective and unbiased.
• Factual, adequate, and convincing.
• Consistent with the engagement objectives.

To determine the sufficiency of information regarding interpretation of a contract, an internal auditor uses

• The best obtainable information.
• Subjective judgments.
• Objective evaluations.
• Logical relationships between information and issues.

In an operational audit, the internal auditors discovered an increase in absenteeism. Accordingly, the chief audit executive decided to identify information about workforce morale. To achieve this engagement objective, the internal auditors must understand that

• Morale cannot be reliably analyzed.
• Only outcomes that are directly quantifiable can be reliably analyzed.
• Reliable information may be obtained about morale factors such as job satisfaction.
• Morale is always proportional to compensation.

The chief audit executive is reviewing the workpapers produced by an internal auditor during a fraud investigation. Among the items contained in the workpapers is a description of an item of physical information. Which of the following is the most probable source of this item of information?

• Observing conditions.
• Interviewing people.
• Examining records.
• Computing variances.

To verify the proper value of costs charged to real property records for improvements to the property, the best source of information is

• Inspection by the internal auditor of real property improvements.
• A letter signed by the real property manager asserting the propriety of costs incurred.
• Original invoices supporting entries into the accounting records.
• Comparison of billed amounts with contract estimates.

Ordinarily, what source of information should most affect the internal auditor’s conclusions?

• External.
• Inquiry.
• Oral.
• Informal.

A well-designed internal control questionnaire should

• Elicit “yes” or “no” responses rather than narrative responses and be organized by department.
• Be a sufficient source of data for assessment of control risk.
• Help evaluate the effectiveness of internal control.
• Be independent of the objectives of the internal auditing engagement.

Which of the following statements indicates the wrong way to use an internal control questionnaire?

• Clarifying all answers with written remarks and explanations.
• Filling out the questionnaire during an interview with the person who has responsibility for the area that is being reviewed.
• Constructing the questionnaire so that a “no” response requires attention.
• Supplementing the completed questionnaire with a narrative description or flowchart.

An auditor is considering developing a questionnaire to research employee attitudes toward control procedures. Which of the following is a criterion that should not be considered in designing the questionnaire?

• Questions must be worded to ensure a valid interpretation by the respondents.
• Questions must be reliably worded so that they measure what was intended to be measured.
• The questionnaire should be short to increase the response rate.
• Questions should be worded such that a “No” answer indicates a problem.

When conducting interviews during the early stages of an internal auditing engagement, it is more effective to

• Ask for specific answers that can be quantified.
• Ask people about their jobs.
• Ask surprise questions about daily procedures.
• Take advantage of the fear that is an important part of the engagement.