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What is the best course of action for the auditor to take?
An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?A . Speak to the payroll manager so he may investigate the auditor's observations.B...
Which of the following Code of Ethics principles was violated?
An internal auditor found that his organization did not make a disclosure that is required by law. However, the auditor decided not to raise an audit finding. Which of the following Code of Ethics principles was violated?A . Objectivity.B . Integrity.C . Proficiency.D . Confidentiality.View AnswerAnswer: B
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...
Which of the following best describes a consulting engagement rather an assurance engagement?
Which of the following best describes a consulting engagement rather an assurance engagement?A . Bank internal auditors review an activity checklist to determine that the loan officer followed proper procedures.B . The chief financial officer asks for the internal auditor's opinion regarding whether the new accounting pronouncements were properly and...
What impact will an internal auditor most likely see during an engagement?
There is a growing perception that employees generally evade their responsibilities. What impact will an internal auditor most likely see during an engagement?A . Supervisors are likely to reduce their level of supervision and increase span of control.B . Employees are likely to be supervised closely and given little freedom.C...
Which of the following would be the best course of action for the chief audit executive (CAE) to take?
A subsidiary of the organization was preparing for an initial public offering (IPO). Af the request of the audit committee, the chief audit executive (CAE) and all senior audit staff were actively involved in the process by helping collect and validate financial data, conducting assessments, and participating in meetings with...
What is the primary purpose of The IIA's Code of Ethics?
What is the primary purpose of The IIA's Code of Ethics?A . Communicate specific activities appropriate to the performance of internal auditingB . Promote ethical culture within corporations and other business organizationsC . Establish mandatory standards of competence for the practice of internal auditingD . Establish principles and expectations governing...
If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?
If the skills and competencies are not present within the internal audit activity to complete an ad-hoc assurance engagement, which of the following is an acceptable resolution?A . Politely decline the engagement due to a lack of qualified staff available at the time.B . Complete the engagement as requested, with...
Which of the following is an example of risk monitoring to ensure a system is performing as intended?
Which of the following is an example of risk monitoring to ensure a system is performing as intended?A . Checking the progress of risk treatment plansB . Considering the consequence and likelihood of risksC . Documenting the risks and their areas of impactD . Communicating to management about risksView AnswerAnswer:...
What concerns should be considered prior to assigning the audit to the same auditor?
The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again....
