QIA Qualified Internal Auditor Questions and Answers

The auditor notes strong indicators of a specific fraud involving this account.

The company has relatively stable operations that have not changed much over the past year.

The auditor would like to identify large, unusual, or nonrecurring transactions during the year.

The operating expenses vary in relation to other operating expenses, but not in relation to revenue.

A credit approval document supported by the customer's audited financial statements.

A copy of a sales invoice to the customer in the auditee's records.

A positive confirmation received directly from the customer.

A customer's purchase order in the auditee's records related to the credit sale.

Internal document obtained from the auditee.

External document obtained directly from an outside source.

Internal document subject to rigorous internal review procedures.

Internal document that has been circulated through an outside party.

To close the open audit issues as soon as possible.

To effect savings as early as possible.

To indicate concurrence with the audit findings.

To ensure that the auditor performance is evaluated.

A decrease in population standard deviation.

An increase in population standard deviation.

A decrease in required sample size

An increase in required sample size

Completeness of input, such as a computer sequence check.

Correct master files, such as a header label.

Input accuracy, such as a check of detail reports.

Accuracy of file maintenance, such as review of exception reports.

The incidence of fraud of a material amount has been established to a reasonable certainty.

Suspicious activities have been reported to internal auditing.

Irregular transactions have been identified and are under investigation.

The review of all suspected fraud related transactions is complete.

Process all personnel agency invoices via a purchase order through the purchasing department.

Verify new vendors to firms listed in a professional association catalogue and/or verify the vendor name and address through the telephone book.

Monitor the closeness of the relationships of recruiters with specific vendors.

Require all employees to sign an annual conflict of interest statement.

Make inquiries of the city's chief financial officer, legal counsel, or grant administrators.

Review prior year working papers and enquire of officials as to changes.

Review applicable grant agreements.

Discuss the matter with the audit committee and make inquiries as to the nature of the requirements and the audit committee's objectives for the audit.