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NEW QUESTION 24
An internal auditor extended the scope of testing for a disbursements engagement following a fraud risk assessment Despite the investment of additional audit resources no significant issues were found Unfortunately a major payment fraud was discovered several months later According to IIA guidance which of the following statements is true regarding the internal auditor's application of due professional care?
Answer: B
NEW QUESTION 25
An engagement supervisor noted that an internal auditor's personal relationship with a process owner resulted in the auditor providing a favorable and partial assessment during an audit within that process owner's are
a. According to MA guidance, which of the following should be used to manage this impairment?
Answer: B
NEW QUESTION 26
Senior management at a financial institution has received allegations of fraud at its derivatives trading desk and has asked the internal audit activity to investigate and issue a report concerning the allegations. The internal audit activity has not yet developed sufficient proficiency regarding derivatives trading to conduct a thorough fraud investigation in this area.
Which of the following courses of action should the chief audit executive (CAE) take to comply with the Standards?
Answer: D
NEW QUESTION 27
A major corporation is considering significant organizational changes. Which of the following groups would not be responsible for implementing these changes?
Answer: D
NEW QUESTION 28
Which of the following statements is correct regarding corporate compensation systems and related bonuses?
I. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
II. Compensation systems are not part of an organization's control system and should not be reported as such.
III. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.
Answer: B
Explanation:
Section: Volume B
NEW QUESTION 29
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