cSolution Manual & Test Bank for Auditing A Risk-Based Approach 12th Edition by Audrey Gramling Karla Johnstone-Zehms Larry Rittenberg All Chapters Complete Guide A+

Chapterg1

1.gThegfunctionalgareasgofgagbusinessgincludes:

a.gSales

b.gMarketing

c.gProduction

d.gAllgofgthegabove

ANSWER:gD



2.gThegauditgofgoperatinggunitsgincludesgallgexcept:

a.gDepots

b.gSubsidiaries

c.gDistribution

d.gManufacturinggplants

ANSWER:gC



3.

I.gThegabilitygofgangenterprisegtogaffordgsogbroadgangaudit

II.gThegdifficultygofgobtaininggpeoplegwhogcangdogagbroadgtypegofgaudit

Whichgisgconsideredgaglimitinggfactor?

A.gStatementgIgonly

B.gStatementgIIgonly

C.gBothgIgandgII

D.gNonegofgthegabove

ANSWER:gC



4.gItgisgagcomparisongofgone’sgowngperformancegingagspecificgareagwithgthatgappliedgbygothersgingcomp
atiblegcircumstances.

A.gValue

B.gMeasurement

,C.gBenchmarking

D.gAuditing

ANSWER:gC



5.gWhichgisgnotgconsideredgasgtheg"threegEs"gthatgInternalgauditorsgaregauditinggfor:

A.gEquity

B.gEthics

C.gEnvironment

D.gEtiquette

ANSWER:gD



6.gItgisgeverythinggthatgmanagementgdoesgingordergthatgtheregisgreasonablegassurancegthegbusinessgwill
gachievegallgofgitsgobjectives.


a.gInternalgAuditing

b.gManagementgControl

c.gInternalgControl

d.gOperationalgAuditing

ANSWER:gC.gINTERNALgCONTROL



7.gWhichgofgthegfollowinggisgNOTgagcategorygofgachievementgofgobjectivesgunderginternalgcontrol?

a.gReliabilitygofgfinancialgreporting.

b.gRecordinggtransactionsgproperly.

c.gEffectivenessgandgefficiencygofgoperations.

d.gCompliancegwithgapplicableglawsgandgregulations.

ANSWER:gB.gRECORDINGgTRANSACTIONSgPROPERLY.



8.gItghelpsgangorganizationgaccomplishgitsgobjectivesgbygbringinggagsystematic,gdisciplinedgapproachgtog
evaluategandgimprovegthegeffectivenessgofgriskgmanagement,gcontrol,gandggovernancegprocesses.

a.gInternalgAuditing

,b.gManagementgControl

c.gInternalgControl

d.gOperationalgAuditing

ANSWER:gA.gINTERNALgAUDITING



9.gItgencourageginternalgauditgtoginterpretgitsgmissiongasgbeinggthegappraisalgofginternalgcontrol.

a.gThegindependentgappraisalgofgthegeffectivenessgofginternalgcontrol.

b.gCommitteegofgSponsoringgOrganizations

c.gMiddle-of-the-roadgapproach

d.gControlgDimension

ANSWER:gC.gMIDDLE-OF-THE-ROADgAPPROACH



10.gAtgthegtopglevel,gonegpossiblegcategorizationgofgoperationalgauditinggcouldgbegasgfollowsgEXCEPT:

a.gAftergsalesgsupport

b.gPersonnelgandghumangrelations

c.gStockgandgmaterialsghandling

d.gAnalysts

ANSWER:gD.gANALYSTS



11.gThesegperformancegmeasuresgdrawgattentiongtogunfairnessgorgpotentialgsocialgirresponsibilitygingter
msgofgcorporategpolicygandgpractice.

a.gEquitygPerformancegMeasures

b.gWorkloadgPerformancegMeasures

c.gEconomygPerformancegMeasures

d.gEffectivenessgPerformancegMeasures

ANSWER:gA.gEQUITYgPERFORMANCEgMEASURES



12.gFunctionalgAreasgofgbusinessgmaygincludegsales,gmarketing,gproduction,gdistribution,gandgHR.

A.gTrue

, B.gFalse

Answer:gA.gTrue



13.gItgisgangeffectivegtoolgofgmanagerialgcontrol.

A.gFinancialgAudit

B.gInternalgAudit/gOperationalgAudit

C.gExternalgAudit

D.gAllgofgthegabove

Answer:gB.gInternalgAudit/gOperationalgAudit



14.gItgcangbegdefinedgsimplygasgagcomparisongofgone’sgowngperformancegingagspecificgareagwithgthatgap
pliedgbygothergingcompatiblegcircumstances.

A.gEquitygPerformance

B.gValuegforgMoneyg(VFM)gAuditing

C.gBenchmarking

D.gNonegofgthegabove

Answer:gC.gBenchmarking



15.gOperationalgAuditorsgaregauditinggforgtheg“threegEs.gWhatgaregthesegthreegES?

A.gExpression,gExpectations,gandgExperiences

B.gExpenses,gEquity,gandgExamination

C.gEffectiveness,gEfficiency,gandgEconomy

D.gExperiences,gEfficiencygandgEconomy

Answer:gC.gEffectiveness,gEfficiency,gandgEconomy



16.gInternalgAuditorsgmustgpossessgcertaingcharacteristicsgthatgcouldghelpgthemgperformgtheirgindividua
lgresponsibilities.

A.gTrue

B.gFalse