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Which of the following control procedures would be most effective to detect this type of fraud?
A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?A . Require the physician to submit a signed statement...
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?A . An independent third party has assessed the organization's system of internal controls to be adequate and effective.B . The chief audit executive reports both functionally and administratively to the CED . The...
What change of risk response strategy does this course of action most likely reflect?
A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?A . From sharing to reduction.B . From acceptance to reduction.C . From...
Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?
Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?A . The internal audit activity's plan for resource allocation.B . The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit...
Providing a vehicle driver handbook is an example of a detective control.
Providing a vehicle driver handbook is an example of a detective control.A . 1 and 2.B . 1 and 4.C . 2 and 3.D . 3 and 4.View AnswerAnswer: A
Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?
Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?A . If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and...
Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?A . Workshops.B . Surveys.C . Interviews.D . Observation.View AnswerAnswer: B
According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?
An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?A . Ask management to determine which...
Which of the following would not be considered part of preliminary survey of an engagement area?
Which of the following would not be considered part of preliminary survey of an engagement area?A . Interviews with individuals affected by the entity.B . Functional walk through test.C . Analytical reviews.D . Sampling scope.View AnswerAnswer: D
Which of the following enhances the independence of the internal audit activity?
Which of the following enhances the independence of the internal audit activity?A . The chief audit executive (CAE) approves the annual internal audit plan.B . The CAE administratively reports to the board.C . The audit committee approves the CAE's annual salary increase.D . The chief executive officer approves the internal...
