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In this scenario, which of the following controls was lacking?
While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because...
Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?
An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned tothe finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was...
Which of following people or groups is most appropriate to perform this audit?
A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?A . The government's independent auditor.B . The external auditors from an accounting firm.C . The internal audit activity.D . The agency's...
This fraud could be detected with which of the following controls?
An accounts receivable clerk receives cash payments, posts the payments to customer accounts, and prepares the daily cash deposit. The clerk has been stealing some cash and manipulating the customer payments to hide the theft. This fraud could be detected with which of the following controls?A . Monthly bank reconciliations...
According to the Standards, which of the following statements regarding workpaper supervision is not true?
The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?A . Review notes of questions that arise during the review process must be retained.B . Dating and initialing each workpaper provides evidence of...
Which of the following explanations of management's decision is least plausible?
Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?A . Management may be concerned about its reputation in the financial markets.B . Management is...
According to IIA guidance, which of the following statements is true?
According to IIA guidance, which of the following statements is true?A . Risks in IT processes are best mitigated by individual controls.B . The overall focus of the framework is on significant controls in all critical IT applications.C . IT risks and related controls are operational and best identified using...
Which of the following statements may the IAA use to describe its work?
The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?A . "Completed with the advance certification of the External Assessors Association...
Justified and necessary, according to the IIA Code of Ethics and Standards.
Justified and necessary, according to the IIA Code of Ethics and Standards.A . 1 onlyB . 2 onlyC . 3 onlyD . 1 and 2 onlyView AnswerAnswer: C
Justified and necessary, according to the IIA Code of Ethics and Standards.
Justified and necessary, according to the IIA Code of Ethics and Standards.A . 1 onlyB . 2 onlyC . 3 onlyD . 1 and 2 onlyView AnswerAnswer: C
