Online Access Free QIA Exam Questions

Purchases from two new vendors increased dramatically after a new buyer was hired. The buyer was obtaining kickbacks from the two vendors based on sales volume.
A possible means of detection is

• A.The use of change analysis and trend analysis of buyer or vendor activity.
• B.Periodic vendor surveys regarding potential buyer conflict of interest or ethics violations.
• C.The use of purchase orders for all purchases.
• D.The receipt of an invoice to put new vendors on the master file.

To test compliance with a policy regarding sales returns recorded during the most recent year, an auditor systematically selected 5% of the actual returns recorded in March and April. Returns during these two busiest months of the year represented about 25% of total annual returns.
Error projections from this sample have limited usefulness because

• A.The error rates during the two busiest months may not be representative of the whole year.
• B.The small size of the sample relative to the population makes sampling risk unacceptable.
• C.The failure to stratify the population according to sales volume results in bias.
• D.The systematic selection of returns during the two months is not sufficiently random.

Which of the following documents would provide the most persuasive evidence concerning the existence and valuation of a receivable?

• A.A positive confirmation received directly from the customer.
• B.A copy of a sales invoice to the customer in the auditee's records.
• C.A customer's purchase order in the auditee's records related to the credit sale.
• D.A credit approval document supported by the customer's audited financial statements.

Which of the following is not a component of audit risk?

• A.Control risk
• B.Inherent risk
• C.Defective risk
• D.Detection risk

Internal auditing is responsible for reporting fraud to senior management or the board when

• A.The incidence of fraud of a material amount has been established to a reasonable certainty.
• B.The review of all suspected fraud related transactions is complete.
• C.Suspicious activities have been reported to internal auditing.
• D.Irregular transactions have been identified and are under investigation.