• Question 13 A client ’ s materials-purchasing cycle begins with requisitions from user departments and ends with the receipt of materials and the recognition of a liability . An auditor ’ s primary objective in reviewing this cycle is to
• Question 14 The company being audited has an internal auditor that is both competent and objective . The independent auditor wants to assign tasks for the internal auditor to perform . Under these circumstances , the independent auditor may
• Question 15 An effective control that protects against the preparation of improper or inaccurate disbursements would be to require that all checks be
• Question 16 During a financial statement audit an internal auditor may provide direct assistance to the independent CPA in performing
• Question 17 When assessing internal auditors ' objectivity , an independent auditor should
• Question 18 Which of the following factors most likely would assist an independent auditor in assessing the objectivity of the internal auditor ?
• Question 19 Which of the following is the most effective control to detect vouchers that were prepared for the payment of goods that were not received ?
• Question 20 Miller Retailing , Inc . maintains a staff of three full-time internal auditors who report directly to the controller . In planning to use the internal auditors to provide assistance in performing the audit , the independent auditor most likely will
• Question 21 The accounts payable department receives the purchase order form to accomplish all of the following except
• Question 22 The independent auditor should acquire an understanding of the internal audit function as it relates to the independent auditor ’ s consideration of internal control because
• Question 23 For effective internal control purposes , the vouchers payable department generally should
• Question 24 For which of the following judgments may an independent auditor share responsibility with an entity ’ s internal auditor who is assessed to be both competent and objective ?