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NEW QUESTION 40
Which of the following is the most common way that occupational fraud is detected?

A. Key controls.B. Internal audits.C. Whistleblower hotline.D. External audits.

Answer: C

 

NEW QUESTION 41
Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?

A. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.B. The number and types of people involved in the assessment, costs, and duration of the QAIPC. The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.D. The scope, findings, risks, recommendations, and agreed-upon improvement actions.

Answer: D

 

NEW QUESTION 42
While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.

A. 1 and 2.B. 2 and 3.C. 2 and 4.D. 1 and 3.

Answer: B

 

NEW QUESTION 43
What is the purpose of a secondary control?

A. It partially reduces the residual risk level when a key control does not operate effectively.B. It helps to ensure the completeness and accuracy of automated controls in a system environment.C. lt combines with other controls to help reduce significant risk exposures to an acceptable level.D. It replaces primary controls that are either ineffective or cannot fully mitigate a risk.

Answer: C

 

NEW QUESTION 44
Which of the following controls could an internal auditor reasonably conclude is effective by observing the physical controls of a large server room?

A. Servers are secured individually to their racks by locks.B. Adequate signs are in place to assist in locating safety equipment.C. Swipe card access is required to gain access to the server room.D. Foam fire extinguishers are operable to protect against electrical fires.

Answer: B

 

NEW QUESTION 45
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