Probability-proportional-to-size (PPS) sampling, also known as monetary unit sampling, is most appropriate for measuring the total misstatement in an accounts payable ledger. This method is used to determine the likelihood of individual items being selected based on their size, with larger items having a higher probability of being selected. This is particularly useful in identifying overstatements and misstatements in financial records, such as accounts payable, where the monetary value of transactions is a critical factor. : Institute of Internal Auditors (IIA), Practice Guide - Auditing Sampling.
Ensuring the quality of an audit engagement, especially a consulting engagement in a complex area like human resources, requires effective supervision and quality assurance measures. Peer review during fieldwork is a recognized method for maintaining high-quality audit work. * IIA Standard 2340 - Engagement Supervision: * This standard requires that engagements be properly supervised to ensure that objectives are achieved, quality is maintained, and audit work is consistent with IIA standards. Peer reviews during fieldwork can help identify issues early and improve the overall quality of the audit. * Fieldwork Peer Review: * Quality Assurance: Peer reviews involve having another auditor review the work performed during fieldwork. This process helps identify any potential issues or improvements in real-time, ensuring that the final work product meets the required standards. * Continuous Improvement: By incorporating peer reviews, the internal audit activity can ensure that best practices are followed, and any deviations from the standard audit process are corrected promptly. * IIA Practice Advisory 2340-1: * This advisory recommends peer reviews as a method to ensure quality and to provide feedback to auditors on their work, enhancing the effectiveness of the engagement. * Option A (Assign an experienced manager): While supervision is essential, peer reviews provide additional quality checks beyond just monitoring by a manager. * Option C (Standardized work program): This ensures consistency but may not be sufficient to ensure quality without additional review mechanisms. * Option D (CAE personally supervising): This is not the most efficient use of the CAE's time. Peer review distributes the supervisory load and adds value through diverse perspectives. Detailed Explanation:Why Not Other Options?Conclusion: Option B is correct as it aligns with best practices for quality assurance in internal auditing, particularly in ensuring the effectiveness and efficiency of the engagement through peer reviews during fieldwork.
Bank confirmations are the most reliable source for verifying the current year-end bank balances. These confirmations are direct responses from the bank to the auditor, providing independent verification of the account balances as of the end of the year. This external confirmation is considered more reliable than internal documents like bank statements, reconciliations, or general ledger balances because it comes directly from a third-party source, ensuring its accuracy and completeness.References: * The Institute of Internal Auditors (IIA) - Practice Guide: External Confirmations * Auditing Standards (e.g., ISA 505 - External Confirmations)
Question 134
使用內部控制問卷 (ICQ) 作為業務初步調查的一部分有下列哪些優點？
Correct Answer: B
The primary advantage of using internal control questionnaires (ICQs) as part of a preliminary survey for an engagement is their efficiency. ICQs allow auditors to quickly gather a large amount of information about the control environment by asking structured questions that cover key areas of interest. This helps in identifying areas that require further investigation or where controls may need improvement. IIA Reference: The IIA's Practice Guide on Evaluating Internal Controls mentions that ICQs are useful for obtaining an initial understanding of controls and are particularly efficient when time or resources are limited. They allow auditors to systematically cover a wide range of control-related topics in a relatively short period.
Question 135
根據 IIA 指南，下列何者是組織流程審查中參與工作測試的敵人？
Correct Answer: C
According to the IIA guidance, when reviewing an organizational process, the engagement work test typically focuses on process controls. This involves evaluating the design and effectiveness of controls in place to mitigate identified risks and ensure the achievement of process objectives. Assessing process controls helps auditors determine if the controls are operating as intended and are sufficient to manage the associated risks. Reference: The Institute of Internal Auditors (IIA) Standards Internal Audit Engagement Planning and Execution
