When CPA's decide the work performed by internal auditors can affect the nature, timing, and extent of the auditor's procedures, the CPA should consider the level of competence and objectivity possessed by the internal auditors. In relation to objectivity, the CPA should ________.

Group of answer choices

examine the organizational level the internal auditors report to

look at the work of the internal auditor

examine the qualifications of the internal auditors

look at the amount of training for the internal auditors

Flag question: Question 2Question 21 pts

A material weakness exists in a situation where it is reasonably possible ________.

Group of answer choices

an immaterial misstatement on the financial statements would not be found in a timely manner

a material misstatement in the financial statements would be found in a timely manner

a material misstatement would not be found in a timely manner

an immaterial misstatement would not be found in a timely manner

Flag question: Question 3Question 31 pts

The use of data analytics by internal auditors can reduce the risk related to the audit. Which of the follow represents an example of how this can occur?

Group of answer choices

Align audit plans with the budget

Using data analytics to approve expense vouchers

Help identify where the greatest risks exist so the auditor can concentrate on these areas

Approve purchase orders

Flag question: Question 4Question 41 pts

Which situations below suggests there is a material weakness in a company's system of internal controls?

Group of answer choices

When the controls seem to be working properly

When management has remediated several deficiencies from a previous management report

When the auditors have to expand their test of one internal control

When either material or immaterial fraud by senior management is present

Flag question: Question 5Question 51 pts

If an auditor discovers a control deficiency, which steps must they take first?

Group of answer choices

Perform tests of controls other than those related to the same assertion with the control deemed to be ineffective

Evaluate the level of severity of the deficiency on the auditor's assessment of control risk for the related assertion

Modify the substantive procedures planned to due to the deficiency

Perform Tests of the deficient control with the assumption of a maximum level of risk

Flag question: Question 6Question 61 pts

An effective system of internal controls in small companies with an insufficient number of employees to provide proper separation of duties can be improved with ________.

Group of answer choices

hiring temporary employees to help in the separation of responsibilities

the owner's direct participation in important record-keeping and control activities

hiring a CPA to do monthly write-up work

the delegation of concise responsibilities for each separate major transaction cycle for every employee

Flag question: Question 7Question 71 pts

Which of these is not seen as an advantage of setting up an enterprise risk management (ERP) system within a company?

Group of answer choices

Cuts back the number of operational surprises

Creates integrated responses too many different types of risks

Does away with all risks

Helps Identify opportunities

Flag question: Question 8Question 81 pts

Incompatible duties exist when an employee is able to perpetrate and conceal errors or fraud.

Group of answer choices

True

False

Flag question: Question 9Question 91 pts

Detective controls are used to help prevent the occurrence of a misstatement.

Group of answer choices

True

False

Flag question: Question 10Question 101 pts

When the presence is increasing in the workplace of user-operated computers and this results in a growing number of individuals having the ability to access the system, the control that can be used to stop unauthorized access to sensitive programs is ________.

Group of answer choices

information on portable memory used as backup copies

passwords and user identification

checks of input validation

verify the number of batch input transactions matches the daily input transactions