NYC Management Auditor Trainee —
Exam 6072 Practice Test Questions and
Correct Answers (Verified Answers) Plus
Rationales 2025|2026 Q&A | Instant
download Pdf
Audit Research, Planning, and Preliminary Testing
1. What is the primary purpose of an audit objective?
A. To identify every employee involved in the audited activity
B. To establish what the audit is intended to determine
C. To calculate the agency's annual operating budget
D. To determine the final wording of the audit report
Correct Answer: B
Rationale: An audit objective states what the auditor intends to determine
through the audit. It provides direction for the audit procedures and helps ensure
that the evidence collected addresses the intended purpose.
2. An auditor begins an assignment by reviewing an agency's policies and prior
audit reports. What is the main benefit of this research?
A. It eliminates the need for fieldwork
B. It guarantees that no control deficiencies exist
C. It provides background for understanding the area being audited
D. It determines the final audit opinion automatically
Correct Answer: C
Rationale: Preliminary research helps the auditor understand the organization's
operations, applicable requirements, known problems, and prior findings. This
background supports effective audit planning but does not eliminate the need for
independent testing.
,3. Which source would generally provide the strongest evidence of an actual
payment made by an agency?
A. An employee's verbal recollection
B. An unsigned internal note
C. A completed social media post
D. A bank or financial transaction record
Correct Answer: D
Rationale: A bank or other authoritative financial transaction record provides
direct documentary evidence that a payment occurred. Verbal statements and
informal notes may provide useful information but generally require
corroboration.
4. What is the main purpose of an audit survey or preliminary review?
A. To obtain an initial understanding of the activity being audited
B. To issue disciplinary action against employees
C. To replace all detailed audit procedures
D. To prepare the final report before testing begins
Correct Answer: A
Rationale: A preliminary survey helps the auditor understand the organization,
processes, controls, risks, and relevant records before detailed testing. It provides
a foundation for determining appropriate audit procedures.
5. An auditor compares an agency's written procurement procedure with the
procedure employees actually follow. What is the auditor primarily examining?
A. Market share
B. Operational practice compared with established requirements
C. Employee compensation
D. Future budget projections
Correct Answer: B
Rationale: Comparing written procedures with actual practices can reveal whether
employees are following established requirements. Differences may indicate
control weaknesses, outdated procedures, or noncompliance.
,Internal Controls and Audit Evidence
6. Which control most directly reduces the risk that one employee can authorize
and pay a fraudulent invoice without detection?
A. Segregation of duties
B. Increasing office space
C. Reducing transaction volume
D. Eliminating management reports
Correct Answer: A
Rationale: Segregation of duties divides incompatible responsibilities among
different individuals. Separating authorization, recording, and payment functions
makes unauthorized transactions more difficult to complete and conceal.
7. An auditor discovers that the same employee creates vendors, approves
invoices, and processes payments. What control concern is most directly
indicated?
A. Excessive statistical sampling
B. Inadequate document formatting
C. Lack of segregation of duties
D. Excessive financial reporting
Correct Answer: C
Rationale: Combining vendor creation, invoice approval, and payment
responsibilities gives one employee extensive control over the transaction cycle.
This concentration of duties increases the risk of error or fraud.
8. Which characteristic makes audit evidence more persuasive?
A. It is difficult for the auditor to verify
B. It comes from an unrelated source
C. It is based solely on an employee's opinion
D. It is relevant and reliable to the audit objective
Correct Answer: D
, Rationale: Evidence should be sufficiently relevant and reliable to support the
auditor's conclusions. Evidence that directly addresses the audit objective and
comes from dependable sources is generally more persuasive.
9. An auditor independently recalculates a financial amount using source
records. What is this procedure primarily intended to do?
A. Verify the mathematical accuracy of the amount
B. Establish the employee's job classification
C. Determine the agency's organizational structure
D. Replace all other audit evidence
Correct Answer: A
Rationale: Recalculation involves independently checking mathematical accuracy.
It can identify computational errors and provides direct evidence regarding the
accuracy of the amount tested.
10. Which situation is most likely to indicate a potential control weakness?
A. A transaction has appropriate supporting documentation
B. An approval is consistently performed by an authorized official
C. Required reconciliations are routinely completed and reviewed
D. Employees can modify financial records without documented authorization
Correct Answer: D
Rationale: Allowing employees to modify financial records without authorization
creates a significant control risk. Proper controls should restrict changes and
provide accountability through authorization and audit trails.
Mathematical and Quantitative Analysis
11. An agency budgeted $240,000 for a program and spent $216,000. What
percentage of the budget was spent?
A. 80%
B. 85%
C. 90%
D. 95%
Correct Answer: C
Exam 6072 Practice Test Questions and
Correct Answers (Verified Answers) Plus
Rationales 2025|2026 Q&A | Instant
download Pdf
Audit Research, Planning, and Preliminary Testing
1. What is the primary purpose of an audit objective?
A. To identify every employee involved in the audited activity
B. To establish what the audit is intended to determine
C. To calculate the agency's annual operating budget
D. To determine the final wording of the audit report
Correct Answer: B
Rationale: An audit objective states what the auditor intends to determine
through the audit. It provides direction for the audit procedures and helps ensure
that the evidence collected addresses the intended purpose.
2. An auditor begins an assignment by reviewing an agency's policies and prior
audit reports. What is the main benefit of this research?
A. It eliminates the need for fieldwork
B. It guarantees that no control deficiencies exist
C. It provides background for understanding the area being audited
D. It determines the final audit opinion automatically
Correct Answer: C
Rationale: Preliminary research helps the auditor understand the organization's
operations, applicable requirements, known problems, and prior findings. This
background supports effective audit planning but does not eliminate the need for
independent testing.
,3. Which source would generally provide the strongest evidence of an actual
payment made by an agency?
A. An employee's verbal recollection
B. An unsigned internal note
C. A completed social media post
D. A bank or financial transaction record
Correct Answer: D
Rationale: A bank or other authoritative financial transaction record provides
direct documentary evidence that a payment occurred. Verbal statements and
informal notes may provide useful information but generally require
corroboration.
4. What is the main purpose of an audit survey or preliminary review?
A. To obtain an initial understanding of the activity being audited
B. To issue disciplinary action against employees
C. To replace all detailed audit procedures
D. To prepare the final report before testing begins
Correct Answer: A
Rationale: A preliminary survey helps the auditor understand the organization,
processes, controls, risks, and relevant records before detailed testing. It provides
a foundation for determining appropriate audit procedures.
5. An auditor compares an agency's written procurement procedure with the
procedure employees actually follow. What is the auditor primarily examining?
A. Market share
B. Operational practice compared with established requirements
C. Employee compensation
D. Future budget projections
Correct Answer: B
Rationale: Comparing written procedures with actual practices can reveal whether
employees are following established requirements. Differences may indicate
control weaknesses, outdated procedures, or noncompliance.
,Internal Controls and Audit Evidence
6. Which control most directly reduces the risk that one employee can authorize
and pay a fraudulent invoice without detection?
A. Segregation of duties
B. Increasing office space
C. Reducing transaction volume
D. Eliminating management reports
Correct Answer: A
Rationale: Segregation of duties divides incompatible responsibilities among
different individuals. Separating authorization, recording, and payment functions
makes unauthorized transactions more difficult to complete and conceal.
7. An auditor discovers that the same employee creates vendors, approves
invoices, and processes payments. What control concern is most directly
indicated?
A. Excessive statistical sampling
B. Inadequate document formatting
C. Lack of segregation of duties
D. Excessive financial reporting
Correct Answer: C
Rationale: Combining vendor creation, invoice approval, and payment
responsibilities gives one employee extensive control over the transaction cycle.
This concentration of duties increases the risk of error or fraud.
8. Which characteristic makes audit evidence more persuasive?
A. It is difficult for the auditor to verify
B. It comes from an unrelated source
C. It is based solely on an employee's opinion
D. It is relevant and reliable to the audit objective
Correct Answer: D
, Rationale: Evidence should be sufficiently relevant and reliable to support the
auditor's conclusions. Evidence that directly addresses the audit objective and
comes from dependable sources is generally more persuasive.
9. An auditor independently recalculates a financial amount using source
records. What is this procedure primarily intended to do?
A. Verify the mathematical accuracy of the amount
B. Establish the employee's job classification
C. Determine the agency's organizational structure
D. Replace all other audit evidence
Correct Answer: A
Rationale: Recalculation involves independently checking mathematical accuracy.
It can identify computational errors and provides direct evidence regarding the
accuracy of the amount tested.
10. Which situation is most likely to indicate a potential control weakness?
A. A transaction has appropriate supporting documentation
B. An approval is consistently performed by an authorized official
C. Required reconciliations are routinely completed and reviewed
D. Employees can modify financial records without documented authorization
Correct Answer: D
Rationale: Allowing employees to modify financial records without authorization
creates a significant control risk. Proper controls should restrict changes and
provide accountability through authorization and audit trails.
Mathematical and Quantitative Analysis
11. An agency budgeted $240,000 for a program and spent $216,000. What
percentage of the budget was spent?
A. 80%
B. 85%
C. 90%
D. 95%
Correct Answer: C
