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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.
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.
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.
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.
NEW QUESTION 34
According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?
- A. 1 and 4 only.
- B. 1 only. |
- C. 1,2, 3, and 4.
- D. 1, 3, and 4 only.
NEW QUESTION 35
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