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NEW QUESTION # 307
Which of the following would be most likely included in the internal audit procedures manual?
Answer: C
Explanation:
The internal audit procedures manual provides detailed policies, methodologies, and processes to guide the internal audit function. This includes the quality assurance and improvement program (QAIP), which ensures engagement performance and overall conformance with the Standards.
Option A (charter) defines authority and purpose but is not part of procedures. Option B (annual plan) is a planning document, not methodology. Option C (engagement results) are outputs, not procedures.
Reference:
IIA Standards - Standard 2040: Policies and Procedures.
NEW QUESTION # 308
All of the following are possible explanations for a significant unfavorable material efficiency
variance except:
Answer: D
NEW QUESTION # 309
Which of the following is an example of a physical control?
Answer: D
NEW QUESTION # 310
An entity has daily cash receipts of US $300,000. A bank has offered to provide a lockbox service that will reduce the collection time by 3 days. The bank requires a monthly fee of US $2,000 for providing this service. If money market rates are expected to average 6% during the year, the additional annual income loss) of using the lockbox service is:
Answer: C
Explanation:
Because collections will be accelerated by 3 days at a rate of US $300,000 per days, the entity will have an additional US $900,000 to invest. At a rate of 6%, the interest earned will be US $54,000 per year. However, the bank will charge US $24,000 $2,000 per month x 12 months) for its services. Thus, the entity will increase its income by US $30,000 54,000 $24,000).
NEW QUESTION # 311
At which fundamental level of a quality assurance and improvement program is an opinion expressed about the entire spectrum of the internal audit function's work?
Answer: C
Explanation:
The QAIP (Quality Assurance and Improvement Program) expresses an opinion at the internal audit function level about the overall efficiency, effectiveness, and conformance with the Standards. Engagement-level reviews assess quality for individual audits, but the overall opinion covers the full internal audit activity.
Options A and D describe perspectives within reviews but do not represent the overall opinion. Option C refers only to engagement-specific assurance, not the full function.
Reference:
IIA Standards - Standard 1300: Quality Assurance and Improvement Program.
NEW QUESTION # 312
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