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NEW QUESTION 44
A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?
- A. Control environment.
- B. Control activities.
- C. Monitoring activities.
- D. Information and communication.
NEW QUESTION 45
Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?
- A. The auditor tested samples of transactions to test the cash function's process flows.
- B. The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
- C. After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
- D. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
NEW QUESTION 46
An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?
- A. Working conditions.
- B. Shareholders and investors.
- C. Marketplace competition.
- D. Employees' families.
NEW QUESTION 47
According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?
- A. Internal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.
- B. Follow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.
- C. An internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.
- D. Internal assessments must be performed at least once every five years by a qualified assessor.
NEW QUESTION 48
While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer's account number was not found in the customer master file. In this scenario, which of the following controls was lacking?
- A. Detective control.
- B. Preventive control.
- C. Directive control.
- D. Corrective control.
NEW QUESTION 49