Section 3

Question 1

This information means that it factual. adequate, and convincing so that a prudent, informed person would reach the same conclsions as the audiitor.

a. Reliable Information
b. Sufficient Information
c. Relvant Information
d. useful information

Answer 1

b. sufficient Information

Question 2

What type of informatoion must an internal auditor collect?

Answer 2

Those information that directlyy relates to the engagement.

Question 3

This information is the besst attainable through the use of appropriate engagement techniques.

a. Reliable Information
b. Sufficient Information
c. Relvant Information
d. useful information

Answer 3

a. Reliable Information

Question 4

An information that internal auditors should identify in order to achieve the engagement’s objective must have the following, except:

a. classification
b. sufficiency
c. reliability
d. being relevant and useful

Answer 4

a. classification

Question 5

What is the meaning of tangential information?

Answer 5

This means that an information is not part of a whole.

note: This type of information can only be used when it DIREECTLY affects the engagements

Question 5

What is the meaning of tangential information?

Answer 5

This means that an information is not part of a whole.

note: This type of information can only be used when it DIREECTLY affects the engagements

Question 6

What are samples of tangential information?

Answer 6

• search

Question 7

Which of the following are sources of information in auditing.

I. Auditor himself
II. External Information
III. Internal-External Information
IV. External-Internal Information
V. Internal Information
VI. Third Party Information

a. I, II, III, V, VI
b. I, II,III
c. II, IV, V
d. I, II, III, IV, V

Answer 7

d. Auditor, external, internal-external. external-internal, internal

Question 8

Determine the level of reliability of the sources of information: AUDITOR

a. reliable
b. most reliable
c. least reliable

Answer 8

b. most reliable

Question 9

What does internal-external information mean?

a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.

Answer 9

d. An information that is generated by the client and processed by a 3rd party.

Question 10

What is an External information?

a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.

Answer 10

a. These informaion is directly given by a 3rd party to the auditor.

Question 11

What is an internal information?

a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.

Answer 11

c. An information that is generated by and remains with the client.

Question 12

What is an external-internal information?

a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.

Answer 12

b. An information generated by a 3rd party and then processed by a client.

Question 13

Rank the sources of audit evidence listed down from highest to lowest in terms of their reliability and persuasiveness.

i. Physical examination, confirmations, external documents, reperformance
ii. Internal documentation (internal control systems are absent), inquiries of management and personnel, analytical procedures when data is not adequate.
iii. Internal documentation (internal control systems are present), obsercations, analytical procedures with adequate data.

a. Medium, Highest, Lowest
b. Highest, Lowest, Medium
c. Lowest, Medium, Highest
d. Medium, Lowest, Highest.

Answer 13

b. Highest, Lowest, Medium

Question 14

An information that can be trusted by the auditor,

a. Reliability
b. Sufficiency
c. Relevance
d. Usefulness

Answer 14

a. reliability

Question 15

This characteristic of an information means that it coincides with the item being audited is.

a. Reliability
b. Sufficiency
c. Relevance
d. Usefulness

Answer 15

c. Relevance

Question 16

This type of audit evidence is done through an inspection or observation of a tangible asset and this is usually followed by a corroborative evidence since this is not sufficient by itself.

a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation

Answer 16

b. Physical Examination

Question 17

This type of audit evidence is done by observing the activity or the facility.

a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation

Answer 17

d. Observation

Question 18

An examination of documents and records that have been created by a third-party, and those documents and records that have been prepared by the organization but are kept outside the organization.

a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation

Answer 18

c. External documentation

Question 19

Is a written or oral response that is obtained directly from the external source, is what type of audit evidence?

a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation

Answer 19

a. Confirmation or representations by external source

Question 20

An examination of documents and records here the document is prepared and used within the organization (Vouching) and its level of in the hierarchy of audit evidence persuasiveness is medium (2).

a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel

Answer 20

b. Internal documentation (under a strong internal control system)

Question 21

An examination of documents and records where the document is prepared and used within the organization (vouching) and this is one of the lowest in the hierarchy of persuasiveness.

a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel

Answer 21

c. Internal documentation (where strong internal control system are absent)

Question 22

This uses comparisons and relationships to determine whether account balances appear reasonable.

a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel

Answer 22

a. Analytical Procedures with adequate data

Question 23

This type of audit evidence is acquired through the use of questionnaire or intervews. This is less reliable because it is less competent, lacks objectivity, and is not free from bias.

a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel

Answer 23

d. Inquiries of management and personnel

NOTE: This is the least reliable type of audit evidence

Question 24

TAKE NOTE 1:

Answer 24

• Analytical procedures when data is not adequate.