Which of the following would provide the most reliable information on the risk associated with an auditable activity?

• A.Past audit findings and instances of management failures.
• B.Management assessment and corroboration by the internal audit activity.
• C.Event scenarios with regression analysis.
• D.Consequences and economic predictability of loss.

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Which of the following is the primary advantage of using a computer assisted audit technique (CAAT) to provide a higher level of assurance?

• A.CAATs can select an appropriate sample size for testing and thus provide higher level of assurance.
• B.CAATs are more objective than the traditional methods in interpreting the results.
• C.CAATs can examine the whole of population of transactions, rather than a sample, in order to identify exceptions and trends.
• D.CAATs can process the results faster and thus give a higher level of assurance.

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Which of the following is not an advantage of face-to-face interviews over electronic surveys?

• A.Survey designers can use a wider variety of question types.
• B.Interviewers can increase a respondent's comprehension of questions.
• C.They are less expensive to distribute and compile data.
• D.The response rate is typically higher.

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Which of the following describes a key characteristic related to effective organizational communication?

• A.A well-designed system of internal controls.
• B.Comprehensive supervisory and verification procedures.
• C.Unique operating environments with varying complexity.
• D.A culture of integrity and transparency.

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Which of the following would be the best example of a monitoring control for a chain of restaurants?

• A.Each restaurant manager reconciles the cash received with the food orders recorded on the computer.
• B.Proof of bank deposit is transmitted to corporate headquarters on a daily basis.
• C.Corporate management prepares a detailed analysis of gross margin per restaurant and investigates those showing a significantly lower gross margin.
• D.All food orders must be entered through the computer, and there is segregation of duties between the food servers and the cooks.

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