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NEW QUESTION 38
Which of the following actions by a chief audit executive would be most effective in preventing fraud?
- A. Ensure that the board is aware of all fraud that has been identified or reported.
- B. Submit an annual report to the board on all fraud that has been detected.
- C. Train the internal audit staff in identifying fraud indicators.
- D. Review the adequacy of all policies that describe prohibited activities.
Answer: D
NEW QUESTION 39
Which of the following is the best example of a computer forensic audit activity?
- A. An internal auditor tried to circumvent the logical access controls of the purchasing system.
- B. An internal auditor used analytical software to trace all disbursements processed on weekends.
- C. An internal auditor recovered emails of an employee who was suspected of fraudulent activities
- D. An internal auditor compared vendor addresses to employee home addresses.
Answer: C
NEW QUESTION 40
An organization is testing a new IT system for digital data storage and security. The internal audit activity has been asked to evaluate the system in a consulting engagement. Although several internal auditors on staff are qualified to perform basic assessments of IT systems, none are familiar with the new system. Which of the following is a legitimate response to the prospective client?
1. Decline the engagement.
2. Proceed with the engagement, performing only those parts of the engagement that the internal auditors are qualified to perform.
3. Accept the engagement and develop the additional competencies in-house prior to the engagement’s starting date.
4. Make arrangements to obtain assistance from a competent IT auditing expert.
- A. 2 and 3 only.
- B. 1 and 4 only.
- C. 1, 3, and 4 only.
- D. 1. 2, and 3 only.
Answer: B
NEW QUESTION 41
The chairperson of an organization’s audit committee has obtained a risk management report that identifies significant industry concerns that impact the organization. The chairperson has asked the chief audit executive (CAE) to review these concerns and advise if they are relevant to the organization. How should the CAE respond?
- A. Accept the engagement but inform senior management of the request.
- B. Decline the engagement because it impairs the internal audit activity’s independence.
- C. Decline the engagement because it is outside of the scope of the internal audit charter.
- D. Accept the engagement but communicate only with the audit committee to protect the confidentiality of the request.
Answer: A
NEW QUESTION 42
An accounts payable clerk who has access to the vendor master file replaced the payment details of a legitimate vendor with those of a friend before processing the payment through the organization’s cashier. Immediately afterward, he restored the original vendor information. Which of the following controls could have prevented this fraud?
- A. Frequent issuance of account statements sent to the vendors.
- B. Approval of master file change requests by the accounts payable supervisor
- C. Comparison of the check register to original invoices.
- D. Segregation of duties between accounts payable and the cashier.
Answer: B
NEW QUESTION 43
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