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NEW QUESTION 54
Which of the following sources of evidence would be least persuasive regarding potential waste and inefficiency on the part of a contractor?

• A. A comparison of contract expenses with those of similar projects.
• B. A walk-through of the contractor's manufacturing and development facilities.
• C. The contractor's certification that it has not incurred any waste or inefficiencies.
• D. An examination of the nature of contract expenses incurred.

Answer: C

Explanation:
Section: Volume C

NEW QUESTION 55
According to NA guidance, which of the following is true regarding typical fraud schemes?
1. A diversion occurs when an employee has an undisclosed personal economic interest in a transaction that adversely affects
the organization.
2. Tax evasion is intentional reporting of false or misleading information on a tax return by an organization to reduce taxes owed.
3. Skimming involves stealing cash or assets from the organization and is normally concealed by adjusting the organization's
records.
4, Disbursement fraud occurs when a person causes the organization to issue a payment for fictitious goods or services.

• A. 2 and 3.
• B. 1 and 3.B.
• C. 1 and 4.
• D. 2 and 4.

Answer: D

NEW QUESTION 56
Which of the following statements accurately describes the responsibility of the internal audit activity regarding IT governance?
1. The internal audit activity does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2. The internal audit activity must assess whether the IT governance of the organization supports the organization's strategies and objectives.
3. The internal audit activity may assess whether the IT governance of the organization supports the organization's strategies and objectives.
4. The internal audit activity may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.

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

Answer: B

NEW QUESTION 57
Which of the following audit findings would have the least impact (either positive or negative) on a department's control environment?

• A. The department makes long-term investment risk decisions to maximize return on investment.
• B. The department manager sets and demonstrates a tone of honesty and integrity in all business dealings.
• C. Many department functions are duplicated or verified by other department employees.
• D. Deficiencies were found in the appropriate authorization of transactions.

Answer: A

Explanation:
Section: Volume B

NEW QUESTION 58
......

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