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A new chief audit executive wants to develop a formal internal control framework for her organization. She uses globally accepted frameworks as a guide. Which of the following would she likely find critical in creating the new framework for her organization?
Which of the following offers the feast evidence that the internal audit activity has achieved organizational independence?
An engagement supervisor notes that an internal auditor usually documents and submits draft audit reports for review without giving the process owners the opportunity to state their position on the issues raised. How should the engagement supervisor respond?
Which of the following situations is most likely to threaten the independence of the internal audit activity?
Which of the following actions by an organization's board would potentially impair the internal audit activity's independence?
Which of the following actions does a competency assessment tool help the chief audit executive perform?
Which of the following is the internal audit activity expected to do with respect to the organization's governance processes?
Which of the following best demonstrates conformance with the Standards relating to continuing professional development of internal auditors?
Which of the following statements is true regarding risk management frameworks?
How can an Internal audit activity contribute to Its organization's risk assessment process?

Question 680 - IIA-CIA-Part1 discussion

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Which of the following controls would be most useful to prevent an employee from using the organization's funds for inappropriate expenditures and falsifying financial records to conceal the fraud?

A.

Segregating duties in the payroll processes.

Answers
A.

Segregating duties in the payroll processes.

B.

Confirming receipt of goods or services.

Answers
B.

Confirming receipt of goods or services.

C.

Performing background checks on newly hired employees.

Answers
C.

Performing background checks on newly hired employees.

D.

Requiring management approval for expenses.

Answers
D.

Requiring management approval for expenses.

Suggested answer: D

Explanation:

Requiring management approval for expenses is an effective control to prevent inappropriate use of organizational funds and falsification of financial records. This control ensures that all expenditures are reviewed and approved by a higher authority, providing a check against potential misuse of funds. It helps in verifying the legitimacy and necessity of expenses, thereby reducing the risk of fraudulent activities by employees.

The Institute of Internal Auditors (IIA) Standards and Practice Advisories.

COSO Internal Control -- Integrated Framework.

'Internal Auditing: Assurance & Advisory Services' by IIA, Chapter on Expense Management and Approval Controls.

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asked 03/11/2024
Arpita Pattnayak
50 questions
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