IIA IIA-CIA-Part2 Quiz 78 Topic 5 Questions 386-390

Question: 1

Which of the following situations justifies the release of an interim report to management and the board?

* The internal auditor is convinced that the audit observations require immediate attention.

* The internal auditor would like to communicate a change in engagement scope for the activity under review.

* The internal auditor notes that the engagement may extend over a longer time period.

* The audit supervisor believes that issuing interim reports eases supervisory review and controls over working papers.

A1 and 3 only

B2 and 3 only

C1, 2, and 3 only

D2, 3, and 4 only

Show Answer

Question: 2

According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?

AHave employees annually sign a code of conduct requiring that they report any known violations.

BImplement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.

CProvide periodic fraud awareness training to employees and test their understanding of the training through online surveys.

DConduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.

Show Answer

Question: 3

An internal auditor is conducting an assessment of the organization's fraud controls. Which of the following would not be considered a preventive control?

1. Daily report that identifies unsuccessful system log-in attempts.

2. Weekly management communication with tips on identifying possible fraud.

3. E-mail alert sent to management for checks issued over $100,000.00.

4. New hire training to explain fraud and employee misconduct.

A1 and 2 only

B1 and 3 only

C2 and 4 only

D3 and 4 only

Show Answer

Question: 4

The internal auditor is asked to conduct an investigation involving a suspected fraud. According to the Standards, which of the following statements regarding the investigation process is false?

AThe auditor should use anonymous surveys of coworkers to assess the character and behavior of the suspect.

BThe auditor must give consideration to the risk of unidentified co-conspirators whether indications exist or not.

CThe auditor should not limit the collection of information by prejudging its relevance to the investigation.

DThe auditor must consider the risk that audit procedures may inadvertently violate the rights of the suspect.

Show Answer

Question: 5

Which of the following statements regarding the use of external contracted services by the chief audit executive (CAE) is false?

AThe CAE's responsibility is not impaired by engaging an external expert.

BThe external expert could have a prior relationship with the audit client.

CThe audit report should not disclose the use of contracted services.

DThe expert should be directed by the objectives and scope of work.

Show Answer

IIA IIA-CIA-Part2 Quiz:78 Topic:5 Questions:386-390