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NEW QUESTION 54

The following are potential sources of evidence regarding the effectiveness of a division's total quality management program. The least persuasive evidence would be a comparison of:

  • A. Scrap and rework costs before and after program implementation.
  • B. Customer returns before and after program implementation.
  • C. Manufacturing and distribution costs per unit before and after program implementation.
  • D. Employee morale before and after program implementation.

Answer: D

Explanation:

Section: Volume B

NEW QUESTION 55

The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?

1. Financial measures.

2. Internal business process measures.

3. Client satisfaction measures.

4. Innovation and learning measures.

  • A. III and IV only
  • B. I only
  • C. II, III, and IV only
  • D. II and IV only

Answer: C

NEW QUESTION 56

According to IIA guidance, which of the following is least likely to be a key financial control in an organization's accounts payable process?

  • A. Monitor customer quality complaints compared to the prior period to identify vendor issues.
  • B. Monitor amounts paid each period and compare them to the budget to identify potential issues.
  • C. Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.
  • D. Compare employee addresses to vendor addresses to identify potential employee fraud.

Answer: A

NEW QUESTION 57

A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive but performs no further follow-up. The auditor's actions woulD.

I.

Be in violation of the IIA Code of Ethics for withholding meaningful information.

II.

Be in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.

III.

Not be in violation of either the IIA Code of Ethics or Standards.

  • A. I and II only
  • B. I only
  • C. II only
  • D. III only

Answer: D

NEW QUESTION 58

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