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NEW QUESTION 37
A performance audit engagement typically involves:

• A. Appraisal of the environment and comparison against established criteria.
• B. Tests of compliance with policies, procedures, laws, and regulations.
• C. Evaluation of organizational and departmental structures, including assessments of process flows.
• D. Review of financial statement information, including the appropriateness of various accounting treatments.

Answer: A

NEW QUESTION 38
Which of the following would have the least significance in an audit of the efficiency of a driver's license testing facility?

• A. Staff are cross-trained to provide backup for other areas of the facility as required.
• B. A point-of-sale cashiering system reduces the need to reenter payment data.
• C. Examiners are required to be recertified on an annual basis.
• D. Clerical staff administer written tests to allow examiners more time to supervise driving tests.

Answer: C

NEW QUESTION 39
Which of the following would be an appropriate role of the internal audit function?

• A. Evaluate the effectiveness of the organization's ethics-related activities.
• B. Determine the consequences for ethics violations.
• C. Be responsible for the management of a whistle blowing hotline.
• D. Establish the ethics policies for the organization.

Answer: A

Explanation:
Section: Volume D

NEW QUESTION 40
An auditor prepared a workpaper that consisted of a list of employee names and identification numbers as well as the following statement:
"A statistical sample of 40 employee personnel files was selected to verify that they contain all documents required by company policy 501 (copy attached). No exceptions were noted."
The auditor did not place any audit verification symbols on this workpaper. Which of the following changes would most improve the auditor's workpaper?

• A. Listing of the actual documents examined for each employee.
• B. Use of audit verification symbols to show that each file was examined.
• C. Removal of the employee names to protect their confidentiality.
• D. Justification for the sample size.

Answer: D

NEW QUESTION 41
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