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NEW QUESTION 35
A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?
- A. Control environment.
- B. Commitment.
- C. Control activities.
- D. Information and communication.
Answer: A
NEW QUESTION 36
Which of the following types of fraud includes embezzlement?
- A. Misappropriation of assets.
- B. Corruption.
- C. Bribery.
- D. Fraudulent statements.
Answer: A
NEW QUESTION 37
According to IIA guidance, which of the following external groups is most likely to represent a liability risk, based on activities associated with the organization's corporate social responsibility program?
- A. Activists.
- B. Suppliers.
- C. Consumers.
- D. Investors.
Answer: A
NEW QUESTION 38
An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?
- A. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
- B. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.
- C. Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
- D. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.
Answer: D
NEW QUESTION 39
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 percentage of past-due accounts receivable than that of other stores.
- C. A much higher bad debt expense as a percentage of sales than that of other stores.
- D. A much higher bad debt expense as a percentage of sales than that of previous years.
Answer: C
NEW QUESTION 40
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