9. Analysis, Evaluation, Documentation, and Supervision

Question 1

What software allows client data to be loaded onto the auditor’s computer system to perform various audit procedures?

Answer 1

Generalized audit software.

Question 2

An __________ permits continuous monitoring of online, real-time systems.

Answer 2

Embedded audit module.

Question 3

What types of computer programs are typically used to perform and document audit processes and procedures?

Answer 3

*Word processing programs (e.g., Microsoft Word)
*Spreadsheet programs (e.g., Microsoft Excel)
*Database programs (e.g., Microsoft Access)

Question 4

Common audit tasks performed by CAATs include

Answer 4

*Aging
*Duplicate identification
*Exportation
*Data mining and extraction
*Gap identification
*Joining and merging
*Sampling
*Sorting
*Stratification
*Summarization
*Calculating totals

Question 5

What is the purpose of artificial intelligence software?

Answer 5

AI computer software is designed to perceive, reason, learn, and understand in order to make decisions related to audit tasks.

Question 6

Process mapping is

Answer 6

A system or process diagram (process map or flowchart) depicting inputs by machines and/or humans and the outputs that result from those processes.

Question 7

A __________ is used to clarify decision-making assignments in cross-functional or departmental projects and processes.

Answer 7

RACI diagram.

Question 8

Flowcharting is used for

Answer 8

Systems development and understanding internal control.

Question 9

Compare a block diagram to a process map.

Answer 9

A block diagram is similar to a process map in that it is used to depict a process in diagram form. It is easier to create and understand because it does not require knowledge of different symbols.

Question 10

Analytical procedures require developing __________ against which specified information can be compared.

Answer 10

Expectations.

Question 11

List examples of analyzable financial data.

Answer 11

*Sales revenues
*Expenses
*Profits
*Inventory balances

Question 12

What documents support engagement results and conclusions?

Answer 12

Workpapers.

Question 13

The main uses of workpapers are to

Answer 13

*Aid in the planning, performance, and review of engagements
*Provide the principal support for engagement results
*Document whether engagement objectives were achieved
*Support the accuracy and completeness of the work performed
*Provide a basis for the internal audit activity’s quality assurance and improvement program
*Facilitate third-party review

Question 14

Workpapers are reviewed to ensure that

Answer 14

They support engagement communications and all necessary procedures are performed.

Question 15

The retention of engagement records must comply with

Answer 15

The organization’s guidelines and any relevant regulatory requirements.

Question 16

What analysis identifies the underlying reason for an unfavorable condition?

Answer 16

Root cause analysis.

Question 17

The audit ____[1]____ will guide audit ____[2]____ designed to obtain audit evidence in the form of findings or observations.

Answer 17

1.Objective(s)
2.Procedure(s)

Question 18

What factors influence the extent of supervision required for an audit engagement?

Answer 18

*Proficiency and experience of internal auditors
*Complexity of the engagement