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QIA – Qualified Internal Auditor

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Showing 1–3 of 10 questions

Question 1

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

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    The small size of the sample relative to the population makes sampling risk unacceptable.
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    The failure to stratify the population according to sales volume results in bias.
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    The systematic selection of returns during the two months is not sufficiently random.
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    The error rates during the two busiest months may not be representative of the whole year.
Question 2

Due to the small number of staffs, one remote unit's petty cash custodian also had responsibility for the imprest fund checking account reconciliation. The cashier concealed a diversion of funds by altering the beginning balance on the monthly reconciliations sent to the group office.

A possible audit test to detect this would be to

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    Compare monthly balances and use change and trend analysis.
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    Require additional monitoring by headquarters whenever improper segregation of duties exists at remote units.
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    Determine if any employees have high personal debt.
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    Determine if any employees are leading expensive lifestyles.
Question 3

Which of the following documents would provide the best evidence that a purchase transaction has actually occurred?

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    Cancelled cheque issued in payment of the procured goods.
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    Ordering department's original requisition for the goods.
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    Receiving memorandum documenting the receipt of the goods.
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    Supplier's invoice for the procured goods.