Question 1

What are possible performance indicators that are appropriate for core processes?

Accepted Answer

a. Performance indicators for core process time include time to market, operating cycle and turnover.
b. Performance indicators for core process cost include cost drivers, cost allocations and cost per activity.
c. Performance indicators for core process quality include defect rates, product years, scrap/waste rates, product returns, and warranty costs.

Question 2

What might the auditor's process of evaluating financial performance measures reveal?

Accepted Answer

The financial analysis may reveal areas where the company's results are inconsistent or suspicious, even after all audit tests have been conducted. Then, the auditor needs to follow up with management about the unexpected results and potentially revisit substantive testing to verify the accuracy of the numbers (and management's explanation). These issues should also be discussed with the audit committee when the draft auditor's report is discussed.

Question 3

What are possible performance indicators that are appropriate for supply chain processes?

Accepted Answer

Performance indicators that are appropriate for supply chain processes include delivery performance, service performance, quality and costs.

Question 4

Why is the relationship between return on assets (ROA) and return on equity (ROE) particularly important for many clients?

Accepted Answer

The relationship between ROA and ROE is

Question 5

What are possible performance indicators that are appropriate for information technology processes?

Accepted Answer

Performance indicators that ar

Question 6

What are possible performance indicators that are appropriate for property processes?

Accepted Answer

Performance indicators that ar

Question 7

What is the purpose of business measurement analysis?

Accepted Answer

Business measurement analysis involves

Question 8

You are on the audit team for Proctor & Gamble, a multi-national corporation with locations in 100 countries and over 150 products. Explain the difficulties of the aggregation process for this type of client.

Accepted Answer

a. The aggregation process is particular

Question 9

Explain why testing the grouping of individual accounts into line items to be reported in the financial statements is a particularly important part of the auditor's review process.

Accepted Answer

Most large companies are made up of man

Question 10

As the auditor for a professional services client, what issues of human resources should you consider?

Accepted Answer

Appropriate performance measures for hu

Question 11

Describe the trade-off and the relationship between non-financial and financial performance data?

Accepted Answer

The auditor must also be aware that non-

Question 12

What is the nature of the final stages of the audit (after the auditor has collected all the evidence)?

Accepted Answer

a. In the final stages of an audit, the

Question 13

What are possible performance indicators that are appropriate for financial management processes?

Accepted Answer

Performance indicators that a

Question 14

Describe the auditor's use of a balanced score card approach to business measurement analysis.

Accepted Answer

The auditor may use a balanced scorecard

Question 15

What are possible performance indicators that are appropriate for human resources processes?

Accepted Answer

Performance indicators for hu

Question 16

Describe the auditor's process of measuring market performance.

Accepted Answer

Market performance and customer attitud

Question 17

After an auditor completes the strategic and business process analyses, including evaluating the financial reporting process, the next step is to aggregate all of the evidence gathered about management assertions for specific classes of transactions. What are the basic procedures that an auditor will use during the aggregation process?

Accepted Answer

a. Obtain audit work-papers and audit ev

Question 18

How and why does the auditor obtain non-financial performance data during the audit?

Accepted Answer

The auditor obtains a lot of non-financi

Question 19

You are an auditor performing the review of the grouping of individual accounts into line items to be reported in the financial statements. Why is this basic process necessary?

Accepted Answer

a. The process of testing management's c

Question 20

How does business measurement analysis help the auditor?

Accepted Answer

Business measurement analysis helps the

What are possible performance indicators that are appropriate for core processes?

What might the auditor's process of evaluating financial performance measures reveal?

What are possible performance indicators that are appropriate for supply chain processes?

Why is the relationship between return on assets (ROA) and return on equity (ROE) particularly important for many clients?

What are possible performance indicators that are appropriate for information technology processes?

What are possible performance indicators that are appropriate for property processes?

What is the purpose of business measurement analysis?

You are on the audit team for Proctor & Gamble, a multi-national corporation with locations in 100 countries and over 150 products. Explain the difficulties of the aggregation process for this type of client.

Explain why testing the grouping of individual accounts into line items to be reported in the financial statements is a particularly important part of the auditor's review process.

As the auditor for a professional services client, what issues of human resources should you consider?

Describe the trade-off and the relationship between non-financial and financial performance data?

What is the nature of the final stages of the audit (after the auditor has collected all the evidence)?

What are possible performance indicators that are appropriate for financial management processes?

Describe the auditor's use of a balanced score card approach to business measurement analysis.

What are possible performance indicators that are appropriate for human resources processes?

Describe the auditor's process of measuring market performance.

How and why does the auditor obtain non-financial performance data during the audit?

You are an auditor performing the review of the grouping of individual accounts into line items to be reported in the financial statements. Why is this basic process necessary?

How does business measurement analysis help the auditor?

Assurance and Auditing

Managing Risk: The Role of Auditing and Assurance

The Building Blocks of Auditing

The Integrated Audit Process

Understanding the Clients Industry and Business: Strategic Analysis

Usiness Processes and Internal Risks

Risk Management and Internal Control

Evaluating Internal Control Over Financial Reporting

Inquiry and Analytical Evidence

Evidence About Management Assertions: Linking Residual Risks to Substantive Tests

Audit Testing for the Sales and Customer Service Process

Audit Testing for the Supply Chain and Production Process

Auditing Resource Management Processes

Completing the Integrated Audit II: Audit Reporting

Interpreting Sample-Based Audit Evidence

The Ethical Auditor: Factors Affecting Auditor Decision Making

Audit and Assurance Services

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Exam 14: Completing the Integrated Audit I: Business Measurement Analysis

What are possible performance indicators that are appropriate for core processes?

What might the auditor's process of evaluating financial performance measures reveal?

What are possible performance indicators that are appropriate for supply chain processes?

Why is the relationship between return on assets (ROA) and return on equity (ROE) particularly important for many clients?

What are possible performance indicators that are appropriate for information technology processes?

What are possible performance indicators that are appropriate for property processes?

What is the purpose of business measurement analysis?

You are on the audit team for Proctor & Gamble, a multi-national corporation with locations in 100 countries and over 150 products. Explain the difficulties of the aggregation process for this type of client.

Explain why testing the grouping of individual accounts into line items to be reported in the financial statements is a particularly important part of the auditor's review process.

As the auditor for a professional services client, what issues of human resources should you consider?

Describe the trade-off and the relationship between non-financial and financial performance data?

What is the nature of the final stages of the audit (after the auditor has collected all the evidence)?

What are possible performance indicators that are appropriate for financial management processes?

Describe the auditor's use of a balanced score card approach to business measurement analysis.

What are possible performance indicators that are appropriate for human resources processes?

Describe the auditor's process of measuring market performance.

How and why does the auditor obtain non-financial performance data during the audit?

You are an auditor performing the review of the grouping of individual accounts into line items to be reported in the financial statements. Why is this basic process necessary?

How does business measurement analysis help the auditor?

Assurance and Auditing

Managing Risk: The Role of Auditing and Assurance

The Building Blocks of Auditing

The Integrated Audit Process

Understanding the Clients Industry and Business: Strategic Analysis

Usiness Processes and Internal Risks

Risk Management and Internal Control

Evaluating Internal Control Over Financial Reporting

Inquiry and Analytical Evidence

Evidence About Management Assertions: Linking Residual Risks to Substantive Tests

Audit Testing for the Sales and Customer Service Process

Audit Testing for the Supply Chain and Production Process

Auditing Resource Management Processes

Completing the Integrated Audit II: Audit Reporting

Interpreting Sample-Based Audit Evidence

The Ethical Auditor: Factors Affecting Auditor Decision Making

Audit and Assurance Services

Filters