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IIA-CIA-PART2 · Question #354

An organization owns vehicles that are kept off-site by employees to pick up and deliver orders. An internal auditor selects a specific vehicle from the fixed asset register for testing. Which of…

The correct answer is C. Compare the registered details of the vehicle in the fixed asset register to a date-stamped. To confirm the existence of a specific vehicle selected from the fixed asset register, the best indirect evidence would be to compare the registered details of the vehicle with a date-stamped photograph. This method provides a verifiable form of evidence that the vehicle exists…

Conducting Internal Audit Engagements

Question

An organization owns vehicles that are kept off-site by employees to pick up and deliver orders. An internal auditor selects a specific vehicle from the fixed asset register for testing. Which of the following would best provide sufficient, indirect evidence for the auditor to confirm the existence of the vehicle?

Options

  • AReview logs of the vehicles assigned to employees for the delivery of goods during the
  • BVisit the home address of the specific employee to see the selected vehicle.
  • CCompare the registered details of the vehicle in the fixed asset register to a date-stamped
  • DSeek independent confirmation of the vehicle's details from one of the delivery employees.

How the community answered

(20 responses)
  • A
    5% (1)
  • B
    5% (1)
  • C
    70% (14)
  • D
    20% (4)

Explanation

To confirm the existence of a specific vehicle selected from the fixed asset register, the best indirect evidence would be to compare the registered details of the vehicle with a date-stamped photograph. This method provides a verifiable form of evidence that the vehicle exists and matches the details recorded in the asset register. It ensures that the vehicle is still in possession of the organization and can be indirectly verified without the need for physical presence at an off-

Topics

#audit evidence#asset existence#indirect evidence#fixed asset testing

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