Auditing Applicant Test from PMIA 1973

This test appeared in the original first edition of The Practice of Modern Internal Auditing in 1973, by Larry Sawyer. It was designed to be administered to applicants for audit positions.

The accompanying text stated:
"Provide the applicant with a series of about 25 statements concerning an audit problem. The statements are to be numbered sequentially, but their logical order has been scrambled. Ask the applicant to rearrange the statements in a reasonable order under the headings provided. The headings may be Purpose, Scope, Control Findings, Performance Findings, Opinion, and Recommendations. An abbreviated example of the hashed statements is shown in the exhibit below."

Take a few minutes to take the test yourself, then ask other members of your staff to do the same. It is interesting to compare the results, and at the same time challenge the suggested solution. The outcome may be that you see the wisdom in such a test and devise one for your own shop.

Click on these links to download/print a PDF version of the test:
Test of Ability to Organize Thoughts (PDF form to fill out on screen)
Test of Ability to Organize Thoughts (PDF form to print out and take manually)

The suggested solution is:
Solution to Test of Ability to Organize Thought (PDF format)

TEST OF ABILITY TO ORGANIZE THOUGHTS

INSTRUCTIONS: Insert in the spaces provided, the proper numbers in their proper order.

Purpose Scope Control Findings Performance Findings Opinion Recommendation
(   ) (   ) (   ) (   ) (   ) (   )
(   ) (   ) (   ) (   ) (   ) (   )
(   ) (   ) (   ) (   ) (   ) (   )
(   ) (   ) (   ) (   ) (   ) (   )
(   ) (   ) (   ) (   ) (   ) (   )
(   ) (   ) (   ) (   ) (   ) (   )
(1) We also recommended that supervisors periodically check manuals to make sure they are kept up to date.

(2) It is also our opinion that the system was working as intended except for the fact that some manuals were not up to date.

(3) Our test of the checked drawings showed that they had all been signed off by engineering supervisors before release.

(4) We reviewed systems and procedures by reading instructions and interviewing engineering personnel.

(5) Our test of the error reports showed them to be accurate and timely.

(6) We found an adequate supply of drafting manuals for all engineers, but 20% of the manuals were not up to date.

(7) We also set out to determine whether the system was working as intended.

(8) We set out to evaluate the adequacy of the system of control over the accuracy of engineering drawings.

(9) Our test of 100 drawings showed that they had all been verified by drawing checkers.

(10) We also found that all drawings must be verified by drawing checkers for accuracy.

(11) We found that after checking, the drawings must be reviewed by engineering supervisors before release.

(12) It is our opinion that the control system was adequate.

(13) We found that a drafting manual had been developed to provide detailed instructions to engineering draftsmen.

(14) We examined 100 engineering drawings in detail.

(15) Management had developed a system of reporting the number of drawing errors based on complaints from the production organization.

(16) We recommended that all manuals be brought up to date promptly.



Audit Wisdom