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Internal controls belong to which risk response category?
Internal controls belong to which risk response category?A . Reduction. B. Avoidance. C. Sharing. D. Acceptance.View AnswerAnswer: A
Which of the following tests would best detect instances where personal travel has been claimed?
An internal auditor is reviewing employee travel expenses from the previous six months for fraud. Which of the following tests would best detect instances where personal travel has been claimed?A . Verifying whether claims have been properly authorized for payment B. Verifying whether claims are properly supported by invoices or...
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?
Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?A . Segregating duties in the payroll processes. B. Confirming receipt of goods or services. C. Performing background checks on newly hired...
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?
With regard to the internal audit activity's quality assurance and improvement program, which of the following topics would the chief audit executive include on the quarterly board meeting agenda?A . The scope and frequency of both internal and external quality assessments. B. The list of audit engagements that will be...
In which of the following ways can a whistleblower hotline serve as a prevent Aative control?
In which of the following ways can a whistleblower hotline serve as a prevent Aative control?A . Third parties who operate the hotline ensure anonymity for whistle blowers. B. Whistleblower tips help discover wrongdoings and violations of the code of conduct. Potential perpetrators of fraud know that their actions can...
Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?
Which of the following statements demonstrates that internal auditors are in conformance with the standard of due professional care?A . Internal auditors have shown they have the freedom to carry out their responsibilities. B. Internal auditors have demonstrated the skills needed to carry out the audit engagement. C. Internal auditors...
Which of the following actions would be most effective to help an internal auditor determine how successful the organization has been in communicating the existence of its ethics hotline?
Which of the following actions would be most effective to help an internal auditor determine how successful the organization has been in communicating the existence of its ethics hotline?A . Reviewing the number of anonymous hotline allegations against employee complaints. B. Surveying employees to determine whether they are aware of...
Wi ch of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?
Wi ch of the following circumstances would most likely be considered a potential red flag for fraud by the internal audit activity?A . The monthly payroll reports are not vetted to ensure terminated employees have been removed from the payroll system B. The volume of nonroutine journal entries has steadily...
Which of the following scenarios violates The IIA's standard regarding internal audit independence?
Which of the following scenarios violates The IIA's standard regarding internal audit independence?A . The chief audit executive (CAE) reports on the internal audit activity's day-to-day tasks and responsibilities to the CEO. B. An assessment of the risk management function is reviewed by an outside consulting firm because the CAE...
Which of the following would best help the organization manage the risk of fraud?
An organization allows the same individuals to physical access inventory and purchase new assets when supplies are depleted. Which of the following would best help the organization manage the risk of fraud?A . Accounting personnel should regularly perform reconciliation between invoices and purchase orders B. Accounting personnel should conduct a...
