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Question: 5

Which of the following sampling plans should an internal auditor use to estimate the number of units in a certain class of inventory without counting each item?

  1. Attributes sampling.
  2. Discovery sampling.
  3. Variables sampling.
  4. Stop or go sampling.


Answer: C

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Question: 4

A company regularly invests excess short-term cash in trading securities. A reliable test of the valuation of those securities would be a

  1. Recalculation of investment carrying value using the equity method.
  2. Comparison of cost data with current market quotations.
  3. Confirmation of securities held by the broker.
  4. Calculation of premium or discount amortization.


Answer: B

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Question: 4

A company regularly invests excess short-term cash in trading securities. A reliable test of the valuation of those securities would be a

  1. Recalculation of investment carrying value using the equity method.
  2. Comparison of cost data with current market quotations.
  3. Confirmation of securities held by the broker.
  4. Calculation of premium or discount amortization.


Answer: B

Question: 5

Which of the following sampling plans should an internal auditor use to estimate the number of units in a certain class of inventory without counting each item?

  1. Attributes sampling.
  2. Discovery sampling.
  3. Variables sampling.
  4. Stop or go sampling.


Answer: C