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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...
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...
Which of the following actions is the most appropriate for her to take?
An internal auditor in a busy internal audit activity reviews her continuing professional development records toward the end of the year and is concerned to find she has undertaken limited training and formal professional development. Which of the following actions is the most appropriate for her to take?A . Remind...
Which of the following is the most appropriate idea to include?
A regional entertainment organization is in the process of developing a corporate social responsibility (CSR) policy. Management invites ideas from employees when developing the CSR policy. Which of the following is the most appropriate idea to include?A . Management has overall responsibility for the effectiveness of governance, risk management, and...
Which of the following documents would promote objectivity within an organization's internal audit activity?
Which of the following documents would promote objectivity within an organization's internal audit activity?A . Internal audit charter. B. Internal audit manual. C. Audit committee charter D. Human resources employee handbook.View AnswerAnswer: B
Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?
An engagement supervisor obtains facilities maintenance reports from a contractor during an audit of third-party services. Which of the following is the source of authority for the engagement supervisor to make such contact outside the organization?A . The policies and procedures of the internal audit activity. B. The provisions of...
Which of the following would be the most appropriate approach?
The internal audit activity is asked to review the effectiveness of controls around the disposal of chemical waste. However, the internal auditors on staff lack the necessary skills to conduct this review. Which of the following would be the most appropriate approach?A . An internal auditor who recently attended a...
Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?
An internal auditor discovered fraud while performing an audit of an organization’s procurement process. Which of the following describes the greatest benefit of using forensic auditing techniques in this scenario?A . Enhanced capability to prevent frauds from occurring. B. Greater assurance that procurement frauds will be detected in a timely...
