AA VCE Exam Download

Panama and Co has been asked to take on the role of internal auditor at one of its clients and would be responsible for implementing its own recommendations.

Which of the following will NOT be considered by external auditors in their assessment of whether to use the work of internal audit?

Internal auditors and management have become increasingly concerned about computer fraud. Which of the following control procedures would be least important in preventing computer fraud?

Auditing standards require that the auditor and the client agree on the terms of the engagement. The agreed terms must be in writing and the usual form would be a letter of engagement. Any other form of appropriate contract, however, may be used.

Which of the following is NOT a benefit of an engagement letter in respect of assurance services?

The management of Tory Bank Ltd suspects that a bank loan officer frequently made loans to fictitious companies, disbursed loan proceed to his wife’s accounts, and then the loan has been written-off as irrecoverable. Some significant facts about the loan officer include

•A high standard of living, explained as the result of sound investments and not taking vacations

•An expensive personal car obtained through business contacts

•Gasoline and repair bills submitted for an assigned company car that is higher than company average (mileage logs were submitted on a quarterly basis)

•Marked annoyance with questions from auditors

The most appropriate trend analysis to indicate this potential fraud is