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NO.62 New credit policies have been implemented in an automated order-entry system to improve the collection of receivables. Sales management has compiled several examples that show decreased sales and delayed order entry, and contends that these examples are a direct result of the new credit-policy constraints. Sales management’s data and information provide:

NO.63 Which of the following statements is correct regarding corporate compensation systems and related bonuses?
I.A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
II.Compensation systems are not part of an organization’s control system and should not be reported as such.
III.An audit of an organization’s compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

NO.64 Which of the following measurements could an auditor use in an audit of the efficiency of a motor vehicle inspection facility?

NO.65 Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

NO.66 Which of the following statements describes impairment to the internal auditor’s objectivity?

NO.67 A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

NO.68 Which of the following describes a key characteristic related to effective organizational communication?

NO.69 Which of the following is the best example of a strategic objective?

NO.70 Management should be included in the development of the audit plan in order to:

NO.71 An internal audit charter should do which of the following?

NO.72 To assure that the technical proficiency of internal auditors is appropriate for the audit engagements to be performed, a chief audit executive should:

NO.73 Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

NO.74 An internal auditor pays to participate in the company’s annual golf tournament, which is held outside of normal business hours.
The auditor wins the putting contest and is awarded an all-expense-paid weekend vacation.
According to the IIA Code of Ethics regarding objectivity, the auditor’s best course of action would be to:

NO.75 Which of the following would provide the best evidence of compliance with an airline’s standard of having aircraft refueled and cleaned within a specified time of arrival at an airport?

NO.76 To enhance the independence of both the internal and external audit functions, audit committees should be composed of:

NO.77 An internal auditor audited a department store’s cash function. Which of the following actions would indicate a lack of due professional care by the auditor?

NO.78 While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

NO.79 According to the Standards, which of the following statements best describes the required content of the chief audit executive’s (CAE) report to senior management and the board on the internal audit activity (IAA)?