,PMT 3600 Risk Assurance Audit Final Exam Review 2026 |
Verified Q&A | Graded A+
1. What is one key benefit of production planning in manufacturing?
Increased product variety
Higher employee turnover
Efficient resource allocation
Reduced marketing costs
2. What factors must be documented when reviewing test results in an audit?
Purpose, source, conclusion, nature, timing, and extent of
procedures
Cost, efficiency, effectiveness, and compliance
Risk assessment, control objectives, and audit findings
Documentation, analysis, reporting, and feedback
3. In a manufacturing company, if one employee is responsible for both
authorizing payments and reconciling bank statements, what risk does this
pose, and how could segregation of duties mitigate it?
It poses a risk of inefficiency, and segregation of duties could mitigate
it by consolidating tasks.
It poses a risk of delays in processing, and segregation of duties could
mitigate it by streamlining responsibilities.
It poses a risk of miscommunication, and segregation of duties could
mitigate it by enhancing collaboration.
It poses a risk of fraud or error, and segregation of duties could
mitigate it by assigning these tasks to different individuals.
,4. List the key activities involved in the production cycle.
Financial analysis, risk assessment, compliance auditing, and
performance evaluation.
Market research, product marketing, sales forecasting, and inventory
management.
Supplier selection, quality control, distribution logistics, and customer
service.
Product design, planning and scheduling, production operations,
and cost accounting.
5. All of the following are components of audit risk except:
Legal risk
Control risk
Detection risk
Inherent risk
6. In a scenario where a financial report is missing several key transactions, how
would this impact the completeness of the report?
The completeness of the report would remain intact, as missing
transactions do not affect overall accuracy.
The completeness of the report would be compromised, as it would
not accurately reflect all relevant source data.
The completeness of the report would improve by excluding
irrelevant transactions.
The completeness of the report would be enhanced by focusing on
only the most significant transactions.
, 7. What are the key stages included in the production cycle of manufacturing?
Quality control, packaging, and sales
Procurement, assembly, and distribution of materials
Design, testing, and marketing of products
Planning, production, and delivery of finished goods
8. In a manufacturing company, if the control objectives are not met, what
potential risks could arise in financial reporting?
Inaccurate financial statements and non-compliance with
regulations.
Delayed product launches and market entry.
Higher production costs and waste.
Increased employee turnover and dissatisfaction.
9. IT General Controls (ITGCs) are important because they:
Prevent unauthorized personnel from having access to data and
applications.
Impact the effectiveness of manual controls.
Allow client staff to change programs without needing to receive
authorization for the change.
Prevent the reliability of electronic audit evidence.
10. Describe the role of completeness in ensuring the integrity of financial
reports.
Completeness only pertains to the numerical accuracy of the data.
Verified Q&A | Graded A+
1. What is one key benefit of production planning in manufacturing?
Increased product variety
Higher employee turnover
Efficient resource allocation
Reduced marketing costs
2. What factors must be documented when reviewing test results in an audit?
Purpose, source, conclusion, nature, timing, and extent of
procedures
Cost, efficiency, effectiveness, and compliance
Risk assessment, control objectives, and audit findings
Documentation, analysis, reporting, and feedback
3. In a manufacturing company, if one employee is responsible for both
authorizing payments and reconciling bank statements, what risk does this
pose, and how could segregation of duties mitigate it?
It poses a risk of inefficiency, and segregation of duties could mitigate
it by consolidating tasks.
It poses a risk of delays in processing, and segregation of duties could
mitigate it by streamlining responsibilities.
It poses a risk of miscommunication, and segregation of duties could
mitigate it by enhancing collaboration.
It poses a risk of fraud or error, and segregation of duties could
mitigate it by assigning these tasks to different individuals.
,4. List the key activities involved in the production cycle.
Financial analysis, risk assessment, compliance auditing, and
performance evaluation.
Market research, product marketing, sales forecasting, and inventory
management.
Supplier selection, quality control, distribution logistics, and customer
service.
Product design, planning and scheduling, production operations,
and cost accounting.
5. All of the following are components of audit risk except:
Legal risk
Control risk
Detection risk
Inherent risk
6. In a scenario where a financial report is missing several key transactions, how
would this impact the completeness of the report?
The completeness of the report would remain intact, as missing
transactions do not affect overall accuracy.
The completeness of the report would be compromised, as it would
not accurately reflect all relevant source data.
The completeness of the report would improve by excluding
irrelevant transactions.
The completeness of the report would be enhanced by focusing on
only the most significant transactions.
, 7. What are the key stages included in the production cycle of manufacturing?
Quality control, packaging, and sales
Procurement, assembly, and distribution of materials
Design, testing, and marketing of products
Planning, production, and delivery of finished goods
8. In a manufacturing company, if the control objectives are not met, what
potential risks could arise in financial reporting?
Inaccurate financial statements and non-compliance with
regulations.
Delayed product launches and market entry.
Higher production costs and waste.
Increased employee turnover and dissatisfaction.
9. IT General Controls (ITGCs) are important because they:
Prevent unauthorized personnel from having access to data and
applications.
Impact the effectiveness of manual controls.
Allow client staff to change programs without needing to receive
authorization for the change.
Prevent the reliability of electronic audit evidence.
10. Describe the role of completeness in ensuring the integrity of financial
reports.
Completeness only pertains to the numerical accuracy of the data.
