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NEW QUESTION 27
The main reason to establish internal controls in an organization is to:

• A. Encourage compliance with policies and procedures.
• B. Ensure the accuracy, reliability, and timeliness of information.
• C. Safeguard the resources of the organization.
• D. Provide reasonable assurance on the achievement of objectives.

Answer: D

NEW QUESTION 28
According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

• A. Payroll time sheets are reviewed and approved by the timekeeper before processing.
• B. Employee access to the payroll database is deactivated immediately upon termination.
• C. Changes to payroll are validated by the personnel department before being processed.
• D. The employee's name listed on organization's payroll is compared to the personnel records.

Answer: A

NEW QUESTION 29
In which type of business environment are price cutting strategies and franchising strategies most appropriate?

• A. Fragmented, decline.
• B. Mature, fragmented.
• C. Competitive, embryonic.
• D. Embryonic, focused.

Answer: B

NEW QUESTION 30
Which of the following is an appropriate responsibility for the internal audit activity with regard to the organization's risk management program?

• A. Identifying and managing risks in line with the entity's risk appetite.
• B. Ensuring that a proper and effective risk management process exists.
• C. Attaining an adequate understanding of the entity's key mitigation strategies.
• D. Identifying and ensuring that appropriate controls exist to mitigate risks.

Answer: C

NEW QUESTION 31
Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?

• A. The auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.
• B. The auditor should explore alternative solutions to address the audit problem, so the audit client has options.
• C. The auditor should take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.
• D. The auditor should focus on the audit client as a person and understand him, rather than just concentrating on the problem.

Answer: D

NEW QUESTION 32
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