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20 Cards in this Set
- Front
- Back
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During which phase of the engagement does the internal auditor identify the objectives and related controls of the activity being examined? |
Preliminary survey |
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What is a preliminary survey good for? |
to become familiar with activities, risks and controls |
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What are the 6 components of a preliminary survey? |
1) engagement client input 2) analytical procedures 3) interviews 4) prior audit reports 5) process mappings 6) checklists |
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What is an analytical procedure assessment based on? |
on the comparison of procedure results with auditor's expectations |
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What are the two types of a questionnaire? |
1) internal control questionnaire 2) pre-interview questionnaire |
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What should questionnaires help with regard to internal controls? |
to evaluate their effectiveness |
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Are only yes/no type of questions possible in a questionnaire? |
no, every kind of type of questions |
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What are the disadvantages of a questionnaire?(2) |
- it is not a sufficient means of understanding the entire system of internal controls - it is inflexible so it is not easily adapted to unique situations |
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Which only answers of a questionnairen should be clarified with written remarks and explanations? |
the inappropriate answers |
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What are the four types of an interview? |
1) preliminary interview 2) fact-gathering interview 3) follow-up interview 4) exit interview |
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What are 4 other data gathering techniques? |
1) observation 2) checklists 3) internal surveys 4) external sources |
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What must IA do with regard to risk when planning an engagement? |
- preliminary risk assessment |
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What are the 4 pivotal aspects of the preliminary risk assessment? |
- reliability of management's assessment of risk - management's process for monitoring, reporting, and resolving risk and control issues - management's reporting of events that exceeded the organization's risk appetite - risks in related activities |
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what is the benefit of sending a memorandum and questionnaire to the supervisors of the department to be evaluated in advance of a preliminary survey? |
it results in more effective and efficient engagements by encouraging a more collegial approach |
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what is more effective a questionnaire or an interview? |
interview |
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What might the internal auditor do to guard against missing what is important? |
to anticipate the approach of a point of critical interest |
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What is a weakness of observational research? |
Lack of experimental control and measurement precision |
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What should IA do to improve their listening? |
interrupt the speaker to probe deeper when additional clarification is needed |
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What is the permanent engagement file? |
it contains information that does not change rapidly over the course of time such as problems detected in prior years |
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Which is the cheapest way of gathering information: face-to-face interview, telephone interview, sending a questionnaire? |
sending a questionnaire |
