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IIA-CIA-Part1 – Certified Internal Auditor - Part 1, The Internal Audit Activity's Role in Governance, Risk, and Control

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Showing 10–12 of 20 questions

Question 10 (Volume E)

An accounts receivable clerk receives cash payments, posts the payments to customer accounts, and prepares the daily cash deposit.

The clerk has been stealing some cash and manipulating the customer payments to hide the theft.

This fraud could be detected with which of the following controls?

Select an option, then click Submit answer.

  • ○

    Monthly bank reconciliations are performed by the clerk on a timely basis.
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    Total cash deposits for the month are reconciled to the cash receipts journal.
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    Names, amounts, and dates on remittance advices are reconciled with the names, amounts, and dates recorded in the cash receipts journal.
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    Total cash deposits are compared with the bank reconciliation.
Question 11 (Volume A)

The chief audit executive should periodically report the internal audit activity's purpose, authority, responsibility, and performance, as well as significant risk exposures and control issues, to which of the following?

I. Board of directors.

II. Senior management.

III. Shareholders.

IV. External auditors.

Select an option, then click Submit answer.

  • ○

    II only
  • ○

    I and II only
  • ○

    I, II, and III only
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    I, III, and IV only
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    Board of directors.
    II. Senior management.
    III. Shareholders.
    IV. External auditors.
Question 12 (Volume D)

During the planning phase of an audit, an internal auditor preliminarily concluded that the controls for a process were adequately designed to manage the associated risk. Under what conditions might this preliminary assessment subsequently prove to be unreliable?

Select an option, then click Submit answer.

  • ○

    Compensating controls from other processes were not present.
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    Redundant controls are not in place to enhance well designed controls.
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    Entity level controls are informal and not consistently enforced.
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    Process controls were not developed from an existing key control checklist.