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Download Essentials of Internal Auditing Exam Dumps

NEW QUESTION 26
In which of the following circumstances is it apparent that the internal auditor exercised due professional care in carrying out his duties?
1. The internal auditor weighed the cost of the engagement against its potential benefits.
2. The internal auditor used anonymous information from a whistleblower to report the existence of fraudulent activity.
3. The internal auditor found minor and major instances of fraud and highlighted only the major instances in its report, in consideration of the board's limited time.
4. The internal auditor decided to use new auditing software to assist with the statistical analysis required during the engagement.

A. 2 and 3 onlyB. 1 and 2 onlyC. 3 and 4 onlyD. 1 and 4 only

Answer: D

 

NEW QUESTION 27
Which of the following is an example of risk monitoring to ensure a system is performing as intended?

A. Communicating to management about risksB. Considering the consequence and likelihood of risksC. Documenting the risks and their areas of impactD. Checking the progress of risk treatment plans

Answer: D

 

NEW QUESTION 28
A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

A. Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.B. Require the physician to submit a signed statement attesting that the treatments had been performed.C. Use computer software to identify abnormal claims based on the insured's age and medical history.D. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

Answer: C

 

NEW QUESTION 29
Which of the following statements is true regarding control activities'?

A. Control activities should be defined for all business processesB. Organizations that are less regulated generally have more complex control activities than highly regulated organizationsC. If two organizations have identical objectives and structures their control activities would be the sameD. Control activities are defined by management through risk mitigation strategies

Answer: A

 

NEW QUESTION 30
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