IIA-ACCA

According to IIA guidance, which of the following statements about working papers is false?A . They assist in the implementation of recommendations.B . They provide support for communication to third parties.C . They demonstrate compliance with auditing standards.D . They contribute to development of the internal audit staff.View AnswerAnswer: A

Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?A . Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.B . The controller at a nationwide manufacturing company...

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?A . Immediately notify management of the area under review...

Which of the following options is the most cost-effective and efficient way for internal auditors to keep current with the latest developments in the internal audit profession?A . Attending annual professional conferences and seminars.B . Participating in on-the-job training in various departments of the organization.C . Pursuing as many professional...

An internal auditor in a small broadcasting organization was assigned to review the revenue collection process. The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?A...

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict. Which of the following is the most appropriate course...

According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?A . Internal auditors should take a leading role in investigating all fraud-related cases.B . Internal auditors must have sufficient knowledge to evaluate the risk of fraud.C . Internal auditors should report all fraud cases to...

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict. Which of the following is the most appropriate course...

Who is responsible for setting the risk appetite?A . External auditors.B . Chief risk officer.C . Operations management.D . Board of directors.View AnswerAnswer: D

Which of the following would not be considered part of preliminary survey of an engagement area?A . Interviews with individuals affected by the entity.B . Functional walk through test.C . Analytical reviews.D . Sampling scope.View AnswerAnswer: D