Question 1

When an internal auditor identifies multiple factors that have been linked with possible fraudulent conditions and suspects that fraud has taken place, the auditor should

Options :

A : Immediately report to the board.

B : Immediately report to senior management and the board.

C : Extend tests to determine the extent of the fraud.

D : Recommend an investigation.

Answer: D

Question 2

How does fraud awareness training support fraud prevention?

Options :

A : Helps develop credible responses to potential risks.

B : Facilitates the testing of controls.

C : Limits rationalization.

D : Reduces opportunities to commit fraud.

Answer: C

Question 3

One standard deviation corresponds to what approximate percentage of the area under a bell curve?

Options :

A : D.95.5%

B : A.34%

C : B.68%

D : C.90%

Answer: C

Question 4

The scope of value-for-money (VFM) audits includes which of the following elements?i. Expertiseii. Economyiii. Efficiencyiv. Effectiveness

Options :

A : B.I and II

B : D.I, II, III, and IV

C : A.I only

D : C.III and IV

Answer: B

Question 5

To facilitate effective engagement follow-up, an internal auditor should

Options :

A : A.Provide a general description of what each recommendation should accomplish.

B : B.Communicate with senior management and the board at the end of the process.

C : D.Determine an acceptable time frame during which management’s response must be received.

D : C.Rely on the client’s management to evaluate the adequacy of the corrective actions.

Answer: C

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