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IIA Essentials of Internal Auditing Sample Questions (Q675-Q680):
NEW QUESTION # 675
According to MA guidance, which of the following statements is true regarding internal auditors' use of technology-based techniques?
- A. Auditors must considering using technology to reduce the organization's risk by detecting all instances of fraud.
- B. Auditors must consider using technology if it advances the engagement, even when implementation costs exceed the benefits.
- C. Auditors must consider using technology only when the Implementation cost does not exceed benefits.
- D. Auditors must consider using technology in a variety of engagements to ensure that their work is substantiated and infallible.
Answer: C
NEW QUESTION # 676
Which of the following describes a key characteristic related to effective organizational communication?
- A. Comprehensive supervisory and verification procedures.
- B. A well-designed system of internal controls.
- C. Unique operating environments with varying complexity.
- D. A culture of integrity and transparency.
Answer: B
NEW QUESTION # 677
While conducting fieldwork, an internal auditor decides to utilize standard operating procedure (SOP) questionnaires to gather information about a human resources department. Which of the following is an advantage of this method?
- A. SOP questionnaires are the most comprehensive technique for data gathering in fieldwork.
- B. SOP questionnaires generally do not need to be cleared by management of the audited department.
- C. SOP questionnaires are useful in identifying discrepancies and educating clients.
- D. SOP questionnaires verify that a department is efficient and effective.
Answer: C
NEW QUESTION # 678
Performing a monthly analysis of potential duplicate invoices paid to suppliers is an example of which type of fraud control?
- A. Proactive control.
- B. Corrective control.
- C. Preventive control.
- D. Detective control.
Answer: D
NEW QUESTION # 679
Which of the following would most likely be considered a red flag for fraud?
- A. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
- B. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
- C. An organization lacks a whistleblower hotline for reporting suspicious activity.
- D. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
Answer: B
NEW QUESTION # 680
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