Professional Documents
Culture Documents
UNIT 2 True - and - False
UNIT 2 True - and - False
A True
B False
A True
Question 3: Sufficient information is competent and the best attainable through the use of
appropriate engagement techniques.
A True
B False
Question 4: Useful information helps an organization create value for its owners, customers, and
clients.
A True
Question 5: Analytical auditing procedures are useful in identifying potential errors or illegal acts.
A True
Question 6: Comparing current period information with budgets or forecasts is not an analytical
auditing procedure.
A True
B False
Question 7: When performing analytical auditing procedures, comparisons may be made from
quarter to quarter.
A True
B False
A True
A True
A True
Question 12: Recomputing quantitative data does not provide information about the reliability of the
input.
A True
Question 13: Internal auditors should gather information from clients about the quality of audit
performance.
A True
Question 14: Internal-external information is created by an external party but subsequently processed
by the engagement client.
A True
B False
Question 15: Physical information consists of the internal auditor’s direct observation and inspection of
activities or physical items.
A True
Question 16: Testimonial information consists only of spoken statements of engagement client
personnel and others in response to inquiries or interview questions.
A True
B False
A True
Question 18: Observation and inspection establish whether the engagement client has title to what is
observed or inspected.
A True
B False
Question 19: An unreturned negative confirmation request provides some information of existence.
A True
Question 20: Most information merits only partial reliance and must therefore be corroborated.
A True
Question 21: Working papers support engagement observations, conclusions, and recommendations.
A True
Question 22:
Engagement working papers must be prepared in paper form.
A True
B False
A True
Question 24: Some security issues that arise when developing working papers using an electronic
medium did not exist when documents were prepared only on hard copy.
A True
Question 25: The chief audit executive or designee is responsible for ensuring that appropriate
supervision is provided throughout the engagement.
A True
A True
B False
Question 27: Senior management or legal counsel should approve the release of the engagement
working papers to outside parties other than the external auditors.
A True
Question 28: Internal auditors do not need to consult with management regarding the accessibility of
engagement records.
A True
B False
A True
Question 30: Under some jurisdictions, public accounting firms are required to prepare and maintain
audit working papers and other information related to any audit report for a statutory
period.
A True