- All Exams Instant Download
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...
When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:
When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:A . Obtain specific answers and maximize efficiency.B . Gather factual data on several different topics.C . Determine agreement or disagreement with a stated viewpoint.D . Obtain information based on the person's own perspective.View...
Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?
Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?A . Hire a risk consultant.B . Implement a hedging strategy.C . Maintain a large foreign currency balance.D . Insist that customers only pay in a stable currency.View...
Which of the following does not need to be defined in the internal audit charter?
Which of the following does not need to be defined in the internal audit charter?A . The audit engagements to be performed during the upcoming year.B . The internal audit activity's position within the organization.C . The scope of internal audit activities.D . Management and the board of directors' agreement...
Leave blank space for cross-references to be completed during the post-audit process.
Leave blank space for cross-references to be completed during the post-audit process.A . 1 and 2 onlyB . 1 and 4 onlyC . 2 and 3 onlyD . 3 and 4 onlyView AnswerAnswer: 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 of the following also should be included in the charter?
An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter? A. The purpose of...
Which of the following also should be included in the charter?
An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter? A. The purpose of...
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?A . Organizational status and objectivity.B . Supervision of the chief audit executive (CAE) by senior management.C . Organizational knowledge and skills.D . CAE certification.View AnswerAnswer: A
Why are preventative controls generally preferred to detective controls?
Why are preventative controls generally preferred to detective controls?A . Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.B . Because preventive controls are more sensitive and identify more exceptions than detective controls.C . Because preventive controls include output procedures,...
