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NEW QUESTION 50
Which of the following best describes the type of risk that an adequately designed and effectively operating system of internal controls should mitigate?

A. Net.B. inherent,C. Controllable.D. Residual.

Answer: B

 

NEW QUESTION 51
An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts.
Which of the following irregularities is the most likely cause of the auditor's suspicion?

A. A much higher percentage of past-due accounts receivable than that of previous years.B. A much higher bad debt expense as a percentage of sales than that of other stores.C. A much higher bad debt expense as a percentage of sales than that of previous years.D. A much higher percentage of past-due accounts receivable than that of other stores.

Answer: B

 

NEW QUESTION 52
According to The IIA's Code of Ethics, which of the following scenarios offers the best example of violating the principle of integrity?

A. An internal audit manager carries out a technical audit request without seeking expert opinion, despite a lack of the requisite skills.B. An internal audit manager provides sample audit reports and workpapers to a friend without obtaining prior approvalC. An internal audit manager assigned to audit a sales process failed to reveal that the process owner is a relativeD. An internal audit manager collaborates with senior management to provide misleading information to government authorities.

Answer: B

 

NEW QUESTION 53
Which of the following items of evidence is most valid to support a finding that a public utility's repair crews are sometimes required to work under unsafe conditions?

A. Videotapes of repair crews working in a situation that is unsafe.B. Reports showing increases in the number of days of sick leave for individuals on repair crews.C. Audio taped testimonials from repair crew members who were required to work under unsafe conditions.D. Written and signed descriptions from repair crew members of the unsafe conditions that they have had to endure.

Answer: A

 

NEW QUESTION 54
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