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NEW QUESTION # 46
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
- A. Document verification.
- B. Analytical review.
- C. Observation.
- D. Inquiry.
Answer: B
NEW QUESTION # 47
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?
- A. Senior management and management of the audited area.
- B. The audit committee and the external auditors.
- C. Senior management and the external auditors.
- D. The audit committee and senior management.
Answer: D
NEW QUESTION # 48
A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?
- A. Require the physician to submit a signed statement attesting that the treatments had been performed.
- B. Use computer software to identify abnormal claims based on the insured’s age and medical history.
- C. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.
- D. Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.
Answer: B
NEW QUESTION # 49
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