Learn which type of data analysis – payment terms, duplicates, aging, or gap – an internal auditor should use to assess the completeness of an organization’s sales invoices over time, according to IIA-CIA-Part2 certification exam concepts.
Table of Contents
Question
An internal auditor wants to assess the completeness of sales invoices issued by the organization over a period of time. Providing that all the necessary data and analytics software is accessible, which of the following types of analysis would be appropriate to satisfy the auditor’s objective?
A. Payment terms analysis.
B. Duplicates analysis.
C. Aging analysis.
D. Gap analysis.
Answer
D. Gap analysis.
Explanation
A gap analysis would be the most appropriate type of analysis for the internal auditor to assess the completeness of sales invoices issued by the organization over a period of time.
A gap analysis looks for missing values, skips, or breaks in a sequential set of data. In this case, the auditor wants to ensure there are no gaps or missing invoice numbers in the series of sales invoices issued during the time period in question.
By analyzing the sales invoice data and checking that there is a consecutive, unbroken sequence of invoice numbers with no unexplained gaps, the auditor can determine whether the set of invoices is complete with no missing invoices. Any gaps or skipped numbers could indicate that some sales invoices are missing from the data set.
The other options would not directly assess completeness:
- Payment terms analysis examines the payment timeframes and conditions, not completeness.
- Duplicates analysis checks for any duplicate invoice numbers, but would not detect missing invoices.
- Aging analysis evaluates outstanding invoices by length of time overdue, but does not confirm all invoices are accounted for.
In summary, gap analysis is the best choice for the internal auditor to verify that the organization’s set of issued sales invoices is complete with no missing invoice numbers in the sequence. This tests for completeness of the data population over the time period specified.
IIA-CIA-Part2 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the IIA-CIA-Part2 exam and earn IIA-CIA-Part2 certification.