IQN QIA Qualified Internal Auditor Exam Practice Test

Examination of the shipping documents supporting recorded transfers to and from the warehouse.

Obtaining written confirmation from management.

Physically observing the inventory in the warehouse.

Examination of warehouse receipts contained in the auditee's records.

The majority of travel advances in theorganizationexceed the prescribed maximum.

Travel advances are not controlled in accordance with existing policy.

The prescribed maximum travel advance is too low.

76% of all travel advances exceed the management prescribed maximum.

A list ofauthorizedusers.

The type of event or transaction attempted.

The terminal used to make the attempt.

The data in the program sought.

Managers regularly assume subordinates' duties.

Managers dealing in matters outside their profit centre’s scope.

Managers not complying with corporate directives and procedures.

Managers subject to formal performance reviews on a regular basis.

Place the point in the middle rather than at the beginning or end of the paragraph.

Use passive rather than active voice.

Highlight the point through the use of nonparallel structure.

Use a short sentence with one idea rather than a longer sentence with several ideas.

Review and approval of auditprograms.

Assurance that the external auditor will rely on the work of the internal auditing department whenever possible.

Review and endorsement of all internal audit reports prior to their release.

Support for appropriate follow-up of recommendations made by the internal auditing department.

The audit firm has been involved in maintaining the accounting records, or undertaking valuations that are incorporated in the financial statements

The audit firm is acting as a legal advocate for the client in litigation

Xenia Taliotis is an influential finance director of Winner Plc

The audit firm is working for long time for its client

Apply the retail method of inventory valuation.

Compare physical inventory counts to perpetual records.

Develop inventory estimates based on the gross profit percentage method.

Analyzecurrent and previous inventory turnover rates.

Employee morale over the two time periods.

Scrap and rework costs over the two time periods.

Customer returns over the two time periods.

Manufacturing and distribution costs per unit over the two time periods.

The internal audit activity should ascertain the extent to which operating and program goals and objectives have been established and conform to those of theorganization.

The internal audit activity should review operations and programs to ensure consistency withorganizationalvalues.

The internal audit activity should be free from interference in determining the scope of internal auditing, performing work, and communicating results.

The internal audit activity should adopt a process to control and assess the overall effectiveness of the quality program.

Special investigations, for instance, into suspected fraud

Confirm that the final result (the sum) is correct

To evaluate the system of internal control that are mainly concerned with the financial statements and accounting

To give an opinion on overall fairness of the financial statements and accounting

Purchase requisitions, journal voucher entries, and bid quotes.

Purchase requisitions, purchase orders, and bid quotes.

Receiving reports, purchase orders, and purchase requisitions.

Purchase orders, receiving reports, and bid quotes.