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IIA Essentials of Internal Auditing Sample Questions (Q743-Q748):
NEW QUESTION # 743
Which of the following best describes why a chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation'?
- A. Fraud specialists are better equipped to act as an expert witness in court
- B. Fraud specialists are better able to properly apply due professional care
- C. Fraud specialists are better at using computer-assisted audit techniques
- D. Fraud specialists are better at using crime scene investigation techniques
Answer: A
Explanation:
A chief audit executive might obtain the services of a fraud specialist to assist in a major fraud investigation because fraud specialists are better equipped to act as an expert witness in court. Their expertise and credentials in fraud investigations provide authoritative insight and detailed knowledge that can support legal proceedings, making them valuable resources in cases where legal actions are pursued.References: The IIA's guidance on managing and investigating fraud.
NEW QUESTION # 744
It is important for the chief audit executive to consider the level of competence of the internal audit staff because their competence influences which of the following?
- A. Proficiency needed to carry out engagements.
- B. Achievement of the objectives of internal control.
- C. Quantity of the audits performed.
- D. The cost-benefit relationship of planned audits.
Answer: A
NEW QUESTION # 745
A new chief audit executive realized that the internal audit charter has not been updated in five years and only includes the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, and the Standards. What mandatory component is missing?
- A. Definition of Internal Auditing.
- B. Statement of Independence.
- C. Operating Procedures of Internal Auditing.
- D. Attestation of Quality Assurance.
Answer: B
NEW QUESTION # 746
Which of the following is an example of corruption?
- A. Requesting reimbursement for overstated travel and entertainment expense amount
- B. Recognizing revenue up front rather than over a contract's life to inflate revenue for the current period
- C. Demanding payment from a vendor for decisions made in the vendor's favor
- D. Misstating realized foreign currency transaction gains or losses
Answer: C
Explanation:
Corruption in the context of unethical practices typically involves wrongdoing for personal gain or to benefit another at the expense of the organization. Demanding payment from a vendor for decisions made in the vendor's favor is a clear example of corruption, as it involves misuse of authority for personal benefit. The other options listed deal with accounting manipulations or reimbursement fraud, which, while unethical, are not examples of corruption as defined in auditing terminology.References: Association of Certified Fraud Examiners (ACFE) - Fraud Definitions and Classifications
NEW QUESTION # 747
Which of the following statements describes the activities performed by the internal audit activity to fulfill the Mission of Internal Audit?
- A. Perform risk management functions in selected areas.
- B. Conduct reviews of internal risk and controls.
- C. Conduct fraud investigations on suspicious deals.
- D. Establish the risk appetite of the organization.
Answer: B
Explanation:
The Mission of Internal Audit is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight2. One of the activities that the internal audit activity performs to fulfill this mission is to conduct reviews of internal risk and controls, which means evaluating and improving the effectiveness of risk management, control, and governance processes in the organization3. This helps the organization to achieve its objectives and mitigate its risks.
References:
1: CIA Exam Practice Questions - Certified Internal Auditor 2019 2: Mission of Internal Audit 3: About Internal Audit : What is Risk Management in Internal Audit - ESG | The Report
NEW QUESTION # 748
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