Question

Fact Pattern: You are an internal auditing supervisor who is reviewing the working papers of a staff internal auditor's overall examination of the firm's sales function. The pages are not numbered or cross-referenced. Furthermore, the working papers were dropped and reassembled at random before they were brought to you. You decide to put the working papers in the proper order according to the Standards. The first stage of this activity is to identify each page as a part of

(1) the preliminary survey,
(2) the review of the adequacy of control processes,
(3) the review for effectiveness of control processes, or
(4) the review of results.

The second page the supervisor selects documents an interview with a salesperson discussing the overall sales cycle. This page belongs with which activity?

A. Preliminary survey.
B. Review for adequacy of control processes.
C. Review for effectiveness of control processes.
D. Review of results.

Answer 1

The second page belongs with the activity (1) Preliminary survey.

Step-by-step explanation:

The second page, which documents an interview with a salesperson discussing the overall sales cycle, belongs with the activity (1) Preliminary survey. The preliminary survey involves gathering information and understanding the overall process and objectives. Conducting interviews with salespeople and understanding the sales cycle would fall within this stage.