Question 1

When sampling methods are used, the concept of sufficiency of information means that the samples selected provide

Options :

A : A.Reasonable assurance that they are representative of the sampled population.

B : B.The best information that is reasonably obtainable.

C : C.Reasonable assurance that the information has a logical relationship to the engagement objective.

D : D.Absolute assurance that a sample is representative of the population.

Answer: A

Question 2

An auditor's judgment plays a major role in which of the following items?

Options :

A : c) Known misstatements

B : a) Projected misstatements

C : d) Tolerable misstatements

D : b) Likely misstatements

Answer: C

Question 3

Risk is not based on:

Options :

A : C.Certainties.

B : A.Probabilities.

C : B.Chances.

D : D.Likelihoods.

Answer: A

Question 4

Objectivity is most likely impaired by an internal auditor's

Options :

A : Review of a purchasing agent-s contract drafts prior to their execution.

B : Reduction of the scope of an engagement due to budget restrictions.

C : Participation on a task force that recommends standards for control of a new distribution system.

D : Continuation on an engagement at a division for which (s)he will soon be responsible as the result of a promotion

Answer: D

Question 5

A chief audit executive used risk assessment to prepare the audit work schedule. Which of the following would be the least appropriate reason to modify the schedule?

Options :

A : Request for postponement since the audit would be too complicated.

B : Change in the relative risk of auditable activities during the year.

C : Budget constraints or expansions.

D : Need for coordination of audit activities with the external auditors.

Answer: A

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