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Which of the following controls would best mitigate the risk of fraud in the bidding process?
Which of the following controls would best mitigate the risk of fraud in the bidding process?A . Have a bidding committee open the tender bids. B. Restrict the time to submit tender bids. C. Keep minutes of pre-bid meetings. D. Allow the higher tenders to rebid.View AnswerAnswer: B
Which of the following types of policies best helps promote objectivity in the interna! audit activity's work?
Which of the following types of policies best helps promote objectivity in the interna! audit activity's work?A . Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment, B. Policies that match internal auditors' performance with feedback from management of the area under...
Which of the following best describes the type of risk that an adequately designed and effectively operating system of internal controls should mitigate?
Which of the following best describes the type of risk that an adequately designed and effectively operating system of internal controls should mitigate?A . Net. B. Controllable. C. inherent, D. Residual.View AnswerAnswer: C
However, neither management nor the CAE was aware that the internal auditor would be making a presentation based on work completed for the organization. According to IIA guidance, which of the following statements is most relevant regarding the actions of the auditor?
At a conference, an interna! auditor presented a new computer-assisted audit technique developed by his organization. The presentation included sample data derived from performing audit engagements for the organization. Travel costs were paid by the conference organizers, and the trip was approved by the chief audit executive (CAE). However, neither...
A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the following is the most appropriate action the CAE should take regarding the request?
A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the following is the most appropriate action the CAE should take regarding the request?A . Assign the engagement to a...
According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?
According to NA guidance, which of the following conditions would enhance the independence of the internal audit activity?A . The organizational culture rewards critical and objective thinking. B. The quality of work performed by the internal audit activity is periodically reviewed, C. The organization establishes effective governing body oversight, D....
Which of the following statements best describes the difference between risk appetite and risk tolerance?
Which of the following statements best describes the difference between risk appetite and risk tolerance?A . Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk, B. Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance...
Which of the following factors is most important for internal auditors to consider when prioritizing fraud risks?
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
Which of the following best describes the risk contained in an initial public offering for a new stock?
Which of the following best describes the risk contained in an initial public offering for a new stock?A . Residual risk. B. Net risk. C. Inherent risk. D. Underlying risk.View AnswerAnswer: C
Which of the following procedures will best help an internal auditor assess operating effectiveness of fraud prevention and detection controls?
Which of the following procedures will best help an internal auditor assess operating effectiveness of fraud prevention and detection controls?A . Benchmarking best practices B. Testing, C. Mapping, D. InterviewingView AnswerAnswer: B
