Internal Auditor

A Selecting only the easiest files to access B A method in which population items have a defined chance of selection, often equal in simple random sampling C Selecting only high-value transactions D Selecting only transactions approved by management

A Selecting items using the auditor's professional judgment and defined criteria B Examining every item in the population C Selecting items by a purely random process only D Selecting only transactions with no risk

A Removing high-value transactions from the population B Dividing a population into subgroups with similar characteristics before sampling C Combining all evidence into one document D Selecting only one item

A They may individually represent substantial risk or value B They eliminate the need to test other items in every case C They are always error-free D They are always selected randomly

A Deleting errors found in the sample B Converting cash to inventory C Changing the accounting policy D Estimating the possible error in a population based on errors found in a sample, where appropriate

A Proving that every control operated all year B Understanding transaction flows and identifying where controls are designed to operate C Calculating all tax liabilities D Replacing all substantive procedures

A Asking management whether a control exists B Independently executing a control or procedure to verify its operation or result C Reviewing only the control policy D Approving the transaction being tested

A Confirming an account balance with a third party B Inspecting a signed contract only C Recalculating a mathematical amount D Watching a process or procedure being performed

A Physically counting inventory only B Seeking information from knowledgeable people through questions C Recalculating depreciation only D Approving a payment

A Responses may be incomplete, biased, or inaccurate without supporting evidence B Verbal information is always false C It is impossible to document an inquiry D Inquiry is prohibited in internal auditing