18 Questions
What techniques can auditors use to assess control design and effectiveness?
Inquiry, observation, inspection, or reperformance techniques
Why is asking open-ended questions more effective than close-ended questions during an audit?
To elicit a description or explanation
What is the significance of examining instances where normal procedures were not followed during an audit?
To identify weaknesses and recommend design improvements
Why is it important for auditors to assess the level of competence of individuals performing controls?
To mitigate risks caused by lack of knowledge
What is the benefit of following a dynamic approach rather than a checklist-based approach in auditing?
Gain a more detailed understanding of how the work gets done
When a weakness is identified during an audit, what action may be necessary?
Deeper analysis
What is the term used to describe the tendency of survey participants to answer questions in a way that will be viewed favorably by others?
Social desirability bias
How can false negatives occur during observation in auditing?
False negatives can occur when behavior modification leads to atypical behavior not being displayed during observation.
What is one manifestation of social desirability bias during observation in auditing?
Behavioral change, such as speeding up or slowing down, can be a manifestation of social desirability bias during observation.
Why should auditors be mindful of social desirability bias when observing working conditions?
Auditors should be mindful of social desirability bias to ensure they obtain the most reliable information during observations.
What is one common way of collecting evidence during audits besides observation?
Document inspection is a common way of collecting evidence during audits.
What types of documents may auditors examine during document inspection?
Auditors may examine internal or external, financial or nonfinancial documents during document inspection.
What are some examples of items that internal auditors may observe during an audit?
Security measures, customer service area layout, machinery condition, construction site perimeter, truck loading procedures, data center conditions
What are the two ways in which auditors can conduct observations?
When the auditee knows the auditor is observing, When the auditee does not know the auditor is observing
How can the quality of information obtained during an observation be affected?
The quality can be affected by the auditee's awareness of the observation.
Why is it important for auditors to consider whether the auditee is aware of being observed?
Auditees may modify their behavior if they know they are being observed.
What potential issue can arise if auditees know about the auditor's observation in a work site?
Auditees may not consistently wear safety equipment even if they are supposed to.
How does visual evaluation help auditors in operational audits?
It helps verify the existence, condition, valuation, and protection of physical facilities, conditions, and practices.
Test your knowledge on observational studies, behavior modification, and biases like false negatives and social desirability. Understand how observation can be affected by participants altering their behavior when being watched and reported.
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