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NEW QUESTION 43
An internal auditor is evaluating controls over the purchasing function. The function includes the material control department, the purchasing department, and the receiving department. Which of the following is true regarding the presentation of the process flow among the three departments?
- A. Both a flowchart and narratives are needed due to the number of departments involved.
- B. Flowcharts are not useful for documenting process flow.
- C. A horizontal flowchart, with the departments described across the top and the process flowing horizontally, would be most useful.
- D. A vertical flowchart of each department, showing inputs at the top and outputs at the bottom, would be most useful.
Answer: C
Explanation:
Section: Volume B
NEW QUESTION 44
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Which of the following should be included in the scope of an audit of a third-party contractor?
Budgets and financial forecasts for the project.
Contractor's information and control systems.
Contractor's financial position.
Progress of the project and costs incurred.
- A. 1 and 4 only.
- B. 1, 2, and 3 only.
- C. 2, 3, and 4 only.
- D. 1, 2, 3, and 4.
Answer: D
NEW QUESTION 45
Which of the following audit procedures is most suitable for verifying that all sales transactions have been recorded?
- A. Vouching.
- B. Re-computation.
- C. Tracing.
- D. Observation.
Answer: C
Explanation:
Section: Volume A
Explanation/Reference:
NEW QUESTION 46
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