AUI3702 EXAM PACK
2025
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|46589353
1 Assignment 1
Part 1 of 1 - IPPF, audit evidence, audit objectives & sampling 30.0 Points
Question 1 of 201.5 Points
Writing an audit programme occurs at which stage of the audit process?
A. During the planning stage.
B. Subsequent to testing internal controls to determine whether to rely on the controls or audit
around them.
C. As the audit is performed.
D. At the end of each audit the standard audit programme should be revised for the next audit to
ensure coverage of noted problem area.
Answer Key:A
Question 2 of 201.5 Points
Statistical sampling differs from other sampling methods in the sense that ...
A. an auditor does not have to exercise professional judgement when applying statistical sampling as
he/she must when applying other sampling methods.
B. statistical sampling produces representative samples, whereas the other methods do not.
C. statistical sampling can deliver absolute assurance, which is not possible with other sampling
methods.
D. statistical sampling is based on the theory of probability, which is not the case with other
sampling methods.
Answer Key:D
Question 3 of 201.5 Points
In accordance with the International Professional Practice Framework (IIA Standards), the process of
examining and evaluating information should contain all of the following except?
, lOMoARcPSD|46589353
A. Collecting information on matters related to the internal audit objective.
B. Selecting internal audit procedures.
C. Flowcharting operating systems.
D. Supervising the internal auditing work performed.
Answer Key:C
Question 4 of 201.5 Points
Which of the following engagement objectives will be accomplished by comparing a sample of
accounts receivable debit entries with customer invoices and related shipping documents?
A. Sales are properly recorded.
B. Sales are billed at the correct price.
C. Accounts receivable represent valid sales.
D. Customer credit is approved.
Answer Key:C
Question 5 of 201.5 Points
Internal auditing is unique in that its scope often encompasses all areas of an organisation. Thus, it is
not possible for each internal auditor to possess detailed competence in all the areas that might be
audited. Which one of the following competencies does the IIA Standards require of every internal
auditor?
A. Knowledge of taxation and legislation as it applies to the operations of the organisation.
B. Proficiency in accounting principles.
C. An understanding of management principles.
D. Proficiency in computer systems and databases.
Answer Key:C
Question 6 of 201.5 Points
Statistical sampling would be appropriate to estimate the value of an auto dealer’s 3 000 line-item
inventory because statistical sampling is?
A. Reliable and objective.
, lOMoARcPSD|46589353
B. Thorough and complete.
C. Thorough and accurate.
D. Complete and precise.
Answer Key:A
Question 7 of 201.5 Points
An internal auditor has set an engagement objective of identifying the existence of personality
conflicts in the procurement department that are detrimental to productivity. Which of the following
engagement techniques will best meet this objective?
A. Inspection of documents
B. Observation
C. Inquiry
D. Analytical review
Answer Key:C
Question 8 of 201.5 Points
An internal auditor has set an engagement objective of determining whether all cash receipts are
deposited intact daily. To satisfy this objective, the internal auditor interviewed the controller who
gave assurances to the auditor that the cash receipts are deposited as soon as possible. As
information that can be used to satisfy the stated engagement objective, the assurance obtained
from the controller is …
A. sufficient but not reliable or relevant.
B. sufficient, reliable, and relevant.
C. not sufficient, reliable, or relevant.
D. relevant but not sufficient or reliable.
Answer Key:D
Question 9 of 201.5 Points
An internal auditor is evaluating the marketing function. The organisation has engaged a medium-
sized local advertising agency to place advertisements in magazine publications. As part of the review
of the engagement working papers, the internal audit supervisor is evaluating the evidence
2025
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|46589353
1 Assignment 1
Part 1 of 1 - IPPF, audit evidence, audit objectives & sampling 30.0 Points
Question 1 of 201.5 Points
Writing an audit programme occurs at which stage of the audit process?
A. During the planning stage.
B. Subsequent to testing internal controls to determine whether to rely on the controls or audit
around them.
C. As the audit is performed.
D. At the end of each audit the standard audit programme should be revised for the next audit to
ensure coverage of noted problem area.
Answer Key:A
Question 2 of 201.5 Points
Statistical sampling differs from other sampling methods in the sense that ...
A. an auditor does not have to exercise professional judgement when applying statistical sampling as
he/she must when applying other sampling methods.
B. statistical sampling produces representative samples, whereas the other methods do not.
C. statistical sampling can deliver absolute assurance, which is not possible with other sampling
methods.
D. statistical sampling is based on the theory of probability, which is not the case with other
sampling methods.
Answer Key:D
Question 3 of 201.5 Points
In accordance with the International Professional Practice Framework (IIA Standards), the process of
examining and evaluating information should contain all of the following except?
, lOMoARcPSD|46589353
A. Collecting information on matters related to the internal audit objective.
B. Selecting internal audit procedures.
C. Flowcharting operating systems.
D. Supervising the internal auditing work performed.
Answer Key:C
Question 4 of 201.5 Points
Which of the following engagement objectives will be accomplished by comparing a sample of
accounts receivable debit entries with customer invoices and related shipping documents?
A. Sales are properly recorded.
B. Sales are billed at the correct price.
C. Accounts receivable represent valid sales.
D. Customer credit is approved.
Answer Key:C
Question 5 of 201.5 Points
Internal auditing is unique in that its scope often encompasses all areas of an organisation. Thus, it is
not possible for each internal auditor to possess detailed competence in all the areas that might be
audited. Which one of the following competencies does the IIA Standards require of every internal
auditor?
A. Knowledge of taxation and legislation as it applies to the operations of the organisation.
B. Proficiency in accounting principles.
C. An understanding of management principles.
D. Proficiency in computer systems and databases.
Answer Key:C
Question 6 of 201.5 Points
Statistical sampling would be appropriate to estimate the value of an auto dealer’s 3 000 line-item
inventory because statistical sampling is?
A. Reliable and objective.
, lOMoARcPSD|46589353
B. Thorough and complete.
C. Thorough and accurate.
D. Complete and precise.
Answer Key:A
Question 7 of 201.5 Points
An internal auditor has set an engagement objective of identifying the existence of personality
conflicts in the procurement department that are detrimental to productivity. Which of the following
engagement techniques will best meet this objective?
A. Inspection of documents
B. Observation
C. Inquiry
D. Analytical review
Answer Key:C
Question 8 of 201.5 Points
An internal auditor has set an engagement objective of determining whether all cash receipts are
deposited intact daily. To satisfy this objective, the internal auditor interviewed the controller who
gave assurances to the auditor that the cash receipts are deposited as soon as possible. As
information that can be used to satisfy the stated engagement objective, the assurance obtained
from the controller is …
A. sufficient but not reliable or relevant.
B. sufficient, reliable, and relevant.
C. not sufficient, reliable, or relevant.
D. relevant but not sufficient or reliable.
Answer Key:D
Question 9 of 201.5 Points
An internal auditor is evaluating the marketing function. The organisation has engaged a medium-
sized local advertising agency to place advertisements in magazine publications. As part of the review
of the engagement working papers, the internal audit supervisor is evaluating the evidence
