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NEW QUESTION 22
During an information security audit, an auditor discovers that the current disaster recovery plan was developed three years ago but never tested. There have been significant changes to information systems since the plan was developed. The auditor should:
- A. Review the recovery plan and report weaknesses to management.
- B. Update the recovery plan for management as part of the review.
- C. Recommend that management and users update and test the recovery plan.
- D. Ask management to test the recovery plan immediately.
Answer: C
NEW QUESTION 23
Which of the following conditions is the strongest indicator of possible fraud?
- A. Independent reconciliations of subsidiary to general ledgers that are not always completed on a timely basis.
- B. A manager who is often over budget at the end of a reporting period.
- C. A condition of excess manufacturing waste material.
- D. An assistant treasurer who refuses to take vacations.
Answer: D
Explanation:
Section: Volume A
NEW QUESTION 24
Which of the following is a detective control for managing the risk of fraud?
- A. Awareness of prior incidents of fraud.
- B. Verification of currency exchange rates.
- C. Receipts for employee expenses.
- D. Contractor non-disclosure agreements.
Answer: B
NEW QUESTION 25
While conducting an audit of a third party’s Web-based payment processor, an internal auditor discovers that a programming error allows customers to create multiple accounts for a single mailing address. Management agrees to correct the program and notify customers with multiple accounts that the accounts will be consolidated. Which of the following actions should the auditor take?
1.Schedule a follow-up review to verify that the program was corrected and the accounts were consolidated.
2.Evaluate the adequacy and effectiveness of the corrective action proposed by management.
3.Amend the scope of the subsequent audit to verify that the program was corrected and that accounts were consolidated.
4.Submit management’s plan of action to the external auditors for additional review.
- A. 1 and 4
- B. 1 and 2
- C. 3 and 4
- D. 2 and 3
Answer: B
NEW QUESTION 26
The chief audit executive can illustrate the value of the internal audit activity by reporting which of the following to the board?
- A. The experience of the organization’s internal auditors
- B. The number of audits in the annual audit plan relative to similar organizations
- C. The overall performance resulting from the internal audit balanced scorecard
- D. The number of outstanding and overdue management actions
Answer: C
NEW QUESTION 27
……
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