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Total 1002 Questions | Updated On: Nov 18, 2024

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Question 1

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

A : Morale cannot be reliably analyzed.

B : Morale is always proportional to compensation.

C : Only outcomes that are directly quantifiable can be reliably analyzed.

D : Reliable information may be obtained about morale factors such as job satisfaction.

Answer: D

Question 2

Which of the following constitutes sufficient audit evidence for verifying air travel reimbursement?

A : Either a pre-printed ticket or a boarding pass.

B : Either a printout of an electronic ticket or a boarding pass.

C : Either a pre-printed ticket or a printout of an electronic ticket.

D : Both a printout of an electronic ticket and a boarding pass.

Answer: D

Question 3

If the ratio of total liabilities to equity increases, a ratio that must also increase is

A : The current ratio.

B : C. Total liabilities to total assets.

C : Return on equity.

D : Times interest earned.

Answer: B

Question 4

The following information has been derived from a company’s financial statements: Current assets $640,000 Total assets 990,000 Long-term liabilities 130,000 Current ratio 3.2 The company’s debt to equity ratio is

A : 0.13

B : 0.33

C : 0.37

D : 0.50

Answer: D

Question 5

Which of the following items is least likely to be considered when determining the strategy for assessing governance, risk management, and control?

A : The organizational culture.

B : The maturity of the processes.

C : The members of the audit committee.

D : The seniority of the persons responsible.

Answer: C

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Total 1002 Questions | Updated On: Nov 18, 2024

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