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NEW QUESTION 51
Which of the following types of sampling techniques should an internal auditor use when testing the effectiveness of internal controls?

A. Dollar-unit sampling.B. Mean-per-unit sampling.C. Attributes sampling.D. Variables sampling.

Answer: C

 

NEW QUESTION 52
According to the Standards, which of the following control strategies would be the most effective in helping to prevent fraud?

A. Provide periodic fraud awareness training to employees and test their understanding of the training through online surveys.B. Conduct routine employee surveys to solicit their knowledge of fraud and unethical behavior within the organization.C. Implement a whistleblower hotline where individuals can make anonymous phone calls to report fraudulent activities.D. Have employees annually sign a code of conduct requiring that they report any known violations.

Answer: A

 

NEW QUESTION 53
Which of the following is a weakness that is inherent in the use of the test data method to test internal controls in a computer-based accounting system?

A. Inclusion of atypical data in the test data may cause errors to be noted on the exception report.B. The approach requires the creation of "dummy companies," possibly destroying or altering actual company data in the process.C. The auditor must test many transactions with the same condition in order to achieve assurance that the condition is being detected.D. Conditions that were not specifically considered by the auditor may go untested.

Answer: D

 

NEW QUESTION 54
The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?

A. Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.B. Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.C. Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.D. Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.

Answer: D

Explanation:
Section: Volume C
Explanation/Reference:

 

NEW QUESTION 55
The internal auditor is asked to conduct an investigation involving a suspected fraud. According to the Standards, which of the following statements regarding the investigation process is false?

A. The auditor should not limit the collection of information by prejudging its relevance to the investigation.B. The auditor must consider the risk that audit procedures may inadvertently violate the rights of the suspect.C. The auditor must give consideration to the risk of unidentified co-conspirators whether indications exist or not.D. The auditor should use anonymous surveys of coworkers to assess the character and behavior of the suspect.

Answer: D

 

NEW QUESTION 56
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