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Which of the following conditions is the most likely indicator of fraud?
Which of the following conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C
According to IIA guidance, which of the following statements regarding the internal audit charter is true?
According to IIA guidance, which of the following statements regarding the internal audit charter is true?A . Senior management should approve the charter before it is submitted to the board.B . The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.C . The...
Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?
During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?A . Report the deviations immediately to the audit committee.B . Gather additional information to determine the...
Which of the following conditions is the most likely indicator of fraud?
Which of the following conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C
According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?
According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?A . The relative complexity, materiality, or significance of matters to which assurance procedures are applied.B . The extent of assurance services necessary to ensure that all risks are identified.C...
Which type of control does this scenario represent?
A computer system automatically locks a user's account after three unsuccessful attempts to log on. Which type of control does this scenario represent?A . Corrective control.B . Preventive control.C . Detective control.D . Compensating control.View AnswerAnswer: B
Which statement regarding acceptance of the money is correct?
The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding...
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?A . Apply antivirus and patch management software.B . Utilize...
According to the Standards, which of the following principles did the CAE violate?
Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and...
Which type of control does this scenario represent?
A computer system automatically locks a user's account after three unsuccessful attempts to log on. Which type of control does this scenario represent?A . Corrective control.B . Preventive control.C . Detective control.D . Compensating control.View AnswerAnswer: B
