Chapter 9: Documenting Issues - Multiple Choice Questions
1. What makes an audit recommendation persuasive?
A. Its length
B. Its use of jargon
C. Its practicality and alignment with root cause
D. Its legal language
Answer: C
2. Why is quantifying audit findings important?
A. To impress clients
B. To improve audit speed
C. To increase persuasiveness and clarity
D. To reduce report length
Answer: C
3. Why is consistency important in audit documentation?
A. It saves paper
B. It avoids legal implications
C. It ensures fairness and comparability
D. It reduces staff workload
Answer: C
4. How can diversion affect the presentation of audit findings?
A. It makes findings more interesting
B. It distracts from the core issues
C. It supports main arguments
D. It improves management decisions
Answer: B
5. Which component of the CCCER model explains 'why' a problem exists?
A. Criteria
B. Condition
C. Cause
D. Effect
Answer: C
6. Which of the following is NOT one of the components of the CCCER model?
A. Condition
B. Criteria
C. Correction
D. Effect
Answer: C
7. What type of language should be avoided in audit reports?
A. Clear and simple
B. Passive and confusing
C. Direct and concise
D. Persuasive but factual
Answer: B
8. Recommendations should be which of the following?
A. Vague
B. Based on hearsay
C. Actionable and realistic
D. Avoiding sensitive issues
Answer: C
9. What type of language should be avoided in audit reports?
A. Clear and simple
B. Passive and confusing
C. Direct and concise
D. Persuasive but factual
Answer: B
10. What is the 'Condition' in the CCCER model?
A. The recommendation for action
B. The expected performance level
C. The actual situation found during the audit
D. The cause of the issue
Answer: C
11. An effective audit finding should be all EXCEPT:
A. Clear
B. Concise
C. Unverifiable
D. Relevant
Answer: C
12. What is one of the main goals of documenting audit issues?
A. To entertain the board
B. To showcase auditor writing skills
C. To communicate risks and solutions
D. To fulfill a regulatory quota
Answer: C
13. An effective audit finding should be all EXCEPT:
A. Clear
B. Concise
C. Unverifiable
D. Relevant
Answer: C
14. What is the 'Condition' in the CCCER model?
A. The recommendation for action
B. The expected performance level
C. The actual situation found during the audit
D. The cause of the issue
Answer: C
15. What is the benefit of structuring findings using the CCCER model?
A. Increases document length
B. Ensures logical clarity and completeness
C. Avoids criticism
D. Decreases audit visibility
Answer: B
16. What is the purpose of the CCCER/5C model in documenting audit findings?
A. To calculate audit fees
B. To train new auditors
C. To organize findings systematically
D. To track client satisfaction
Answer: C
17. Which technique helps improve the quality of audit recommendations?
A. Repetition
B. Root cause analysis
C. Random sampling
D. Legal threats
Answer: B
18. What is one of the main goals of documenting audit issues?
A. To entertain the board
B. To showcase auditor writing skills
C. To communicate risks and solutions
D. To fulfill a regulatory quota
Answer: C
19. What does 'Criteria' refer to in audit findings?
A. The outcome of the audit process
B. Standards or expectations against which performance is evaluated
C. A summary of audit results
D. Feedback from employees
Answer: B
20. What does 'Effect' refer to in the CCCER model?
A. The recommended fix
B. The result of the condition
C. The action taken
D. The audit plan
Answer: B
21. Which component of the CCCER model explains 'why' a problem exists?
A. Criteria
B. Condition
C. Cause
D. Effect
Answer: C
22. When documenting findings, why is using evidence important?
A. To justify auditor fees
B. To make the report longer
C. To support accuracy and validity
D. To please management
Answer: C
23. What makes an audit recommendation persuasive?
A. Its length
B. Its use of jargon
C. Its practicality and alignment with root cause
D. Its legal language
Answer: C
24. How can diversion affect the presentation of audit findings?
A. It makes findings more interesting
B. It distracts from the core issues
C. It supports main arguments
D. It improves management decisions
Answer: B
25. Which of the following is NOT one of the components of the CCCER model?
A. Condition
B. Criteria
C. Correction
D. Effect
Answer: C
26. Which of the following best describes 'cause' in the CCCER model?
A. The effect of a control weakness
B. The standard being violated
C. The reason why a problem occurred
D. The control being tested
Answer: C
27. Why is quantifying audit findings important?
A. To impress clients
B. To improve audit speed
C. To increase persuasiveness and clarity
D. To reduce report length
Answer: C
28. What does 'Effect' refer to in the CCCER model?
A. The recommended fix
B. The result of the condition
C. The action taken
D. The audit plan
Answer: B
29. In the CCCER model, which part involves suggested improvements?
A. Criteria
B. Recommendation
C. Cause
D. Effect
Answer: B
30. Why is consistency important in audit documentation?
A. It saves paper
B. It avoids legal implications
C. It ensures fairness and comparability
D. It reduces staff workload
Answer: C
31. Which of the following supports better issue documentation?
A. Using general statements
B. Avoiding root causes
C. Aligning with business risks
D. Relying only on templates
Answer: C
32. Recommendations should be which of the following?
A. Vague
B. Based on hearsay
C. Actionable and realistic
D. Avoiding sensitive issues
Answer: C
33. Which technique helps improve the quality of audit recommendations?
A. Repetition
B. Root cause analysis
C. Random sampling
D. Legal threats
Answer: B
34. When documenting findings, why is using evidence important?
A. To justify auditor fees
B. To make the report longer
C. To support accuracy and validity
D. To please management
Answer: C
35. In the CCCER model, which part involves suggested improvements?
A. Criteria
B. Recommendation
C. Cause
D. Effect
Answer: B
36. Which of the following best describes 'cause' in the CCCER model?
A. The effect of a control weakness
B. The standard being violated
C. The reason why a problem occurred
D. The control being tested
Answer: C
37. Which of the following supports better issue documentation?
A. Using general statements
B. Avoiding root causes
C. Aligning with business risks
D. Relying only on templates
Answer: C
38. What does 'Criteria' refer to in audit findings?
A. The outcome of the audit process
B. Standards or expectations against which performance is evaluated
C. A summary of audit results
D. Feedback from employees
Answer: B
39. What is the purpose of the CCCER/5C model in documenting audit findings?
A. To calculate audit fees
B. To train new auditors
C. To organize findings systematically
D. To track client satisfaction
Answer: C
40. What is the benefit of structuring findings using the CCCER model?
A. Increases document length
B. Ensures logical clarity and completeness
C. Avoids criticism
D. Decreases audit visibility
Answer: B
