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NEW QUESTION 24
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 no fraud had occurred.
According to the Standards, which of the following principles did the CAE violate?

  • A. Individual objectivity.
  • B. Organizational independence.
  • C. Proficiency.
  • D. Due professional care.

Answer: D

 

NEW QUESTION 25
Which of the following is a common type of payroll fraud?

  • A. Fictitious employees.
  • B. Unauthorized overtime.
  • C. Skimming.
  • D. Unearned bonuses or commissions.

Answer: A

 

NEW QUESTION 26
According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?

  • A. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
  • B. The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.
  • C. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.
  • D. The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.

Answer: A

 

NEW QUESTION 27
According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?
1. Identification.
2. Mitigation.
3. Remediation.
4. Reduction.

  • A. 1, 3, and 4 only.
  • B. 1,2, 3, and 4.
  • C. 1 only. |
  • D. 1 and 4 only.

Answer: D

 

NEW QUESTION 28
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

  • A. Board of directors.
  • B. Senior management.
  • C. All employees.
  • D. Internal audit activity.

Answer: A

 

NEW QUESTION 29
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