IQN Qualified Internal Auditor - QIA FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

The purchasing manager of a manufacturing company was concerned with the rising prices of some direct materials provided by a supplier. The purchasing manager told the supplier to either maintain the current prices or withdraw as a supplier for the company's direct materials. Thesupplier devised a plan to circumvent the purchasing manager's intent without actually violating the purchasing manager's mandate.
Which one of the following is the probable action taken by the supplier?

A. The supplier maintained prices in the short run but later returned to a pattern of increasing prices. B. The supplier decided to stop providing the direct materials to the manufacturing company, since holding the line on prices would have a negative impact. C. The supplier worked through the president of the manufacturing company to force the purchasing manager to cancel the mandate. D. The supplier maintained prices but substituted a lower grade of direct materials.

Discussion 0

Correct Answer: D Vote an answer

Question 2

When making a presentation to management, the auditor wants to report findings and to stimulate action.
These objectives are best accomplished by

A. Showing a series of slides or overheads that graphically depict the findings; limit verbal commentary. B. Using slides/overheads to support a discussion of major points. C. Handing out copies of the report, asking the participants to read the report, and asking for questions. D. Delivering a lecture on the findings.

Discussion 0

Correct Answer: B Vote an answer

Question 3

In a variables sampling application, which of the following factors will vary directly with a change in confidence level from 90% to 95%?

A. Standard error of the mean. B. Non-sampling error. C. Point estimate of the arithmetic mean. D. Achieved precision.

Discussion 0

Correct Answer: D Vote an answer

Question 4

What evidence is appropriate to determine that recorded purchase transactions were valid and at the best price?

A. Receiving reports, purchase orders, and purchase requisitions. B. Purchase orders, receiving reports, and bid quotes. C. Purchase requisitions, purchase orders, and bid quotes. D. Purchase requisitions, journal voucher entries, and bid quotes.

Discussion 0

Correct Answer: B Vote an answer

Question 5

Which of the following is not a stage of risk management process?

A. Migration B. Review C. Assessment D. Identication

Discussion 0

Correct Answer: A Vote an answer

Question 6

Which of the following is an example of intimidation threat to independence of the auditor?

A. The audit firm has been involved in maintaining the accounting records, or undertaking valuations that are incorporated in the financial statements B. The audit firm is working for long time for its client C. Xenia Taliotis is an influential finance director of Winner Plc D. The audit firm is acting as a legal advocate for the client in litigation

Discussion 0

Correct Answer: C Vote an answer

Question 7

The auditor wants to understand the actual flow of data regarding cash processing. The most convincing evidence would be obtained by

A. Performing a "walk-through" of the processing and obtaining copies of all documents used. B. Reviewing the programming flowchart for evidence of control procedures placed into the computer programs. C. Interviewing the treasurer. D. Reviewing the systems flowchart.

Discussion 0

Correct Answer: A Vote an answer

Question 8

Audits vary in their degree of objectivity. Of the following, which is likely to be the most objective?

A. Financial control audit over payroll procedures. B. Performance audit of the marketing department. C. Operational audit of the personnel function hiring and firing procedures. D. Compliance audit of company's overtime policy.

Discussion 0

Correct Answer: D Vote an answer