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1. The best audit procedure to determine whether or not a company is meeting its objective of satisfying 95% of customer inquiries within 24 hours would be to
- A.Develop a customer satisfaction survey that includes a question about the timeliness of service and send it to all customers.
- B.Select a mean-per-unit statistical sample from the total population base and trace the sample to the customer complaint log to determine whether or not 95% of the sample had their complaints addressed within 24 hours.
- C.Select an attribute sample from the population of logged-in customer complaints and trace the complaints to records indicating their disposition, noting the time and nature of the disposition.✓ Correct
- D.Develop a customer satisfaction survey and send it to a statistically selected sample of customers based on mean-per-unit sampling; ask them to identify the time it took for the service department to satisfactorily address their problem; calculate a mean and standard deviation.
Explanation
Attributes sampling from complaint logs provides direct evidence of whether service objectives are met, without relying on outside surveys.
2. Which of the following situations would be most likely to suggest the use of cluster sampling?
- A.The auditor needs to combine attributes and variables methods.
- B.The auditor sees no need to characterize the whole population.
- C.The population is scattered among many locations.✓ Correct
- D.Transactions in the population vary widely in value.
Explanation
Cluster sampling is used when populations are spread across many locations, making it more efficient to sample clusters.
3. Which best describes an advantage of yes/no questionnaires?
- A.The root cause of a control failure can be better understood.
- B.A process flow can be better understood.
- C.The actual state of controls can be verified.
- D.The results of large response pools can be aggregated and analyzed easily.✓ Correct
Explanation
Yes/no questionnaires allow large pools of responses to be easily aggregated and statistically analyzed.
4. An audit team developed a questionnaire with response choices such as 'Likely not a problem,' 'Possibly a problem,' and 'Likely a problem.' This illustrates the use of
- A.Rating scales.✓ Correct
- B.Ratio analysis.
- C.Unobtrusive measures or observations.
- D.Trend analysis.
Explanation
Such graded responses are examples of rating scales.
5. During an operational audit, an auditor notices a large number of re-ship items. What is the most appropriate next step?
- A.Take a sample of the items on hand and trace them to the underlying documents, such as receiving reports and sales orders, to determine how the goods have been handled.✓ Correct
- B.Take an inventory of the goods on hand so the dollar amount can be included in the audit report.
- C.Write the finding up, but do not perform additional work without the director’s approval.
- D.Report the items to divisional management and ask for their explanation.
Explanation
Tracing a sample to underlying documents provides evidence on how goods were processed before further conclusions.
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