NO.85 Which of the following is the most common method of fraud detection?

NO.86 Which of the following is the best way to detect fraud?

NO.87 An internal auditor is performing analytical reviews as part of an audit of a supermarket’s merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

NO.88 Which of the following situations is most likely to impair internal audit objectivity?

NO.89 Which of the following enhances the independence of the internal audit activity?

NO.90 The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

NO.91 A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity’s chief financial officer (CFO).
Which of the following would impair the internal audit function’s independence?

NO.92 An internal auditor is conducting an assessment of the organization’s fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?
1. The organization uses an automated authority approval matrix to control payments.
2. The organization has a whistleblower hotline that is available to employees.
3. Annually, every manager completes a comprehensive fraud assessment of his or her department.
4. Annually, the organization reviews and communicates the code of expected behavior.

NO.93 Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
1. Professional certification, license, or other recognition of the engineer’s competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.

NO.94 Which of the following is an activity that an internal auditor must not perform?

NO.95 Which of the following is a second line of defense in effective risk management and control?

NO.96 A government agency’s policy states that board members’ travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

NO.97 Which of the following is most likely to be considered a control weakness?

NO.98 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?

NO.99 Which of the following statements describes impairment to the internal auditor’s objectivity?

NO.100 An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

NO.101 According to IIA guidance, which of the following best describes internal auditors’ responsibility regarding fraud?