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NEW QUESTION 30
Which of the following best describes the misdirection of payments on accounts receivable to an employee’s bank account?

  • A. Fraud on the balance sheet.
  • B. Fraud open on the books.
  • C. Fraud off the books.
  • D. Fraud hidden on the books.

Answer: C

 

NEW QUESTION 31
A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director’s independence?

  • A. Performing a pre-implementation review of the company’s payroll application.
  • B. Providing the COBIT framework as a possible IT management tool.
  • C. Preparing the financial statements for the company’s defined contribution plan.
  • D. Reviewing the company’s policy for foreign currency translation adjustments for compliance with accounting standards.

Answer: C

 

NEW QUESTION 32
Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?

  • A. Their understanding of auditing standards.
  • B. Their reporting line within the organization.
  • C. The nature of their regular duties and responsibilities.
  • D. Previous experience working with the internal audit activity.

Answer: A

 

NEW QUESTION 33
An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank’s IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

  • A. Not allow the audit manager to hire the contractor, as it would be a conflict of interest.
  • B. Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.
  • C. Allow the audit manager to hire the contractor, but state that the individual is not allowed to work on IT security audits for one year.
  • D. Allow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.

Answer: D

 

NEW QUESTION 34
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 and 4 only.
  • B. 1 only. |
  • C. 1,2, 3, and 4.
  • D. 1, 3, and 4 only.

Answer: A

 

NEW QUESTION 35
……

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