IIA-CIA-Part1

While conducting an engagement in the procurement department, the internal auditor noticed that the department head’s travel reports showed minor travel expenses, and there were no charges for hotels, meals, or transportation. However, the auditor knew that the department head frequently traveled worldwide to meet with suppliers and visit their...

Which of the following best demonstrates that the internal audit activity is using due professional care?A . The internal audit activity reports directly to the board on the engagements it performs. B. Internal auditors undertake the necessary training to complete their audit work. C. The completion of engagements is based...

An internal auditor observed that sales staff are able to modify or cancel an order in the system prior to shipping* She wonders whether they can also modify orders after shipping. Which of the following types of controls should she examine?A . Batch controls. B. Application controls. C. General IT...

If an internal auditor suspects fraud during an engagement which of the following is expected of the auditor?A . Evaluate the suspected activities to determine whether a forma! investigation is warranted, B. Immediately inform senior management and the board of the suspected fraud. C. Ascertain the level of resources needed...

During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?A . Periodic reinforcement of the internal audit...

Which of the following would be the most effective fraud prevention control?A . Email alert sent to management for checks issued over $100,000. B. Installation of a video surveillance system in a warehouse prone to inventory loss. C. New hire training to explain fraud and employee misconduct. D. Daily report...

Which of the following best illustrates the application of due professional care during an audit of the procurement department?A . The internal auditor began checking purchase requisitions for proper authorizations. He stopped when he discovered an instance of noncompfiance. and he concluded the controls were ineffective. B. The internal auditor...

Which of the following factors is most important for internal auditors to consider when prioritizing fraud risks?A . The organization’s code of conduct. B. The organization’s competition. C. The organization’s code of ethics. D. The organization’s cultureView AnswerAnswer: D

A multinational organization has asked the internal audit activity to assist in setting up the organization’s risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?A . Coordinate and facilitate risk...

Which of the following could increase risks to the organization’s control environment?A . Strong board of directors oversight. B. Incentive-based compensation structures. C. Lower than average employee turnover. D. Implementation of a fraud hotline.View AnswerAnswer: B