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Which of the following should a general internal auditor be able to characterize as an IT-related risk?
Which of the following should a general internal auditor be able to characterize as an IT-related risk?A . Computer servers are in a room that is accessible to all employees, B. An IT architect avoids taking vacations and sharing his workload with coworkers, C. Hours billed by IT developers exceed...
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 would be considered a violation of The HAfs mandatory guidance on independence?
Which of the following would be considered a violation of The HAfs mandatory guidance on independence?A . The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer. B. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE....
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 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
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?
Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?A . ISO 26000. B. Global Reporting Initiative. C. Open Compliance and Ethics Group. D. COSO’s enterprise risk management frameworkView AnswerAnswer: B
Which of the following would be the most appropriate next step for the auditor?
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?
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...
Which of the following types of controls should she examine?
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?
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...
