QIA Sample Questions Answers

Apply the retail method of inventory valuation.

Compare physical inventory counts to perpetual records.

Develop inventory estimates based on the gross profit percentage method.

Analyzecurrent and previous inventory turnover rates.

Examining financial and operating information

Review of the economy, efficiency and effectiveness of operations

Review of compliance with laws, regulations and other external requirements

Confirming that the final result (the sum) is correct

Checklists or reminder lists

Flowcharts

Questionnaires

Research reported in professional journals and text books

To close the open audit issues as soon as possible.

To effect savings as early as possible.

To indicate concurrence with the audit findings.

To ensure that the auditor performance is evaluated.

Reconciling the accounts receivable subsidiary ledgers with the control account.

Preparing an aging analysis.

Reviewingauthorizationof credit terms.

Tracing a sample of credit memos to the accounts receivable subsidiary ledger.

Individuals who are not employees have no access privileges.

Revoked access privileges are cancelled on a weekly cycle.

Access privileges are activated promptly after they areauthorized.

A systemsprogramkeeps records of all additions/deletions of access changes.

The internal audit activity should ascertain the extent to which operating and program goals and objectives have been established and conform to those of theorganization.

The internal audit activity should review operations and programs to ensure consistency withorganizationalvalues.

The internal audit activity should be free from interference in determining the scope of internal auditing, performing work, and communicating results.

The internal audit activity should adopt a process to control and assess the overall effectiveness of the quality program.

Subsequent to the completion of an audit, but prior to the issuance of an audit report, the audit senior in charge of the audit was offered a permanent position in the auditee's department.

An annual report summary of the department's audit work schedule and financial budget.

Significant interim changes to the approved audit work schedule and financial budget.

An audit plan was approved by senior management and the board. Subsequent to the approval, senior management informed the audit director not to perform an audit of a division because the division's activities were very sensitive.

Managers regularly assume subordinates' duties.

Managers dealing in matters outside their profit centre’s scope.

Managers not complying with corporate directives and procedures.

Managers subject to formal performance reviews on a regular basis.