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What is an appropriate first step in an internal auditor’s fraud risk assessment to evaluate how the organization manages such risk?
What is an appropriate first step in an internal auditor’s fraud risk assessment to evaluate how the organization manages such risk?A . Develop preventive and detective controlsB . Identify potential fraud scenariosC . Assess the impact and likelihood of fraud risksD . Determine fraud risk responsesView AnswerAnswer: B
Which of the described findings requires more consideration from a fraud risk perspective?
An internal auditor notes that inventory counts are conducted on Mondays only and that all documentation is on paper as there are no computers in the underground warehouses. Also she notices that the person responsible for receiving the goods is the same one who distributes materials and spare parts Finally,...
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 ordersB . Accounting personnel should conduct a...
Which of the following actions is most appropriate for the CAE to take?
The chief audit executive (CAE) has hired a new internal auditor who was immediately assigned to a procurement function audit. Because the new auditor's name is similar to that of the procurement manager, some staff members think the two are related, although they are not. Which of the following actions...
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 ordersB . Accounting personnel should conduct a...
Given management's discovery, which of the following statements is valid?
An internal audit of warehouse inventory revealed no material deficiencies. However, management later discovered fraud, which occurred during the period that was audited, and determined that a major control deficiency allowed the fraud to occur. Given management's discovery, which of the following statements is valid?A . The internal auditors violated...
Which of the following is the most appropriate consideration during this process?
A new internal audit activity is considering the adoption of a risk and control framework. Which of the following is the most appropriate consideration during this process?A . The framework should not be developed by the internal audit activityB . The framework should apply to individual projects rather than the...
Which of the following describes the most appropriate match between a potential temporary guest auditor candidate and an upcoming audit assignment?
Which of the following describes the most appropriate match between a potential temporary guest auditor candidate and an upcoming audit assignment?A . A purchasing manager with two years of prior audit experience in public practice to lead a contracts management auditB . A communications officer who worked in the marketing...
Which of the following would be the most suitable internal control framework for an organization to adopt?
Which of the following would be the most suitable internal control framework for an organization to adopt?A . A framework that specifies common best practices for an organization to evaluate and benchmark.B . A framework that specifies correct and incorrect business methodologies.C . A framework with precise specifications for how...
According to IIA guidance, the internal audit activity must be free from interference in which of the following areas in order to maintain organizational independence?
According to IIA guidance, the internal audit activity must be free from interference in which of the following areas in order to maintain organizational independence?A . Monitoring resources.B . Compensating the chief audit executive.C . Determining scope.D . Allocating internal costs.View AnswerAnswer: C
