Question 11 (1 point)

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Which of the following best describes an internal auditor's responsibility after noting indicators of fraud?

Question 11 options:

	Report the matter to the audit committee and request funding for outside specialists to help investigate the possible fraud.
	Consult with external legal counsel to determine the course of action to be taken.
	Report the possibility of fraud to senior management and ask how to proceed.
	Do additional tests and audit activities that support this possibility Report the information to the chief audit executive.

Question 12 (1 point)

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In cash disbursement schemes fraudulent disbursements are made through falsification of invoices, timecards, cheques, and other documents. The false information is made to look like any other genuine transaction, so that the employer will pay it without question. Which of the following is not a type of cash disbursement scheme fraud?

Question 12 options:

	Refund overstatements
	Fictitious refunds
	Fictitious voids
	Fictitious discounts

Question 13 (1 point)

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How should the internal auditor react when he discovers, while monitoring progress, that nothing

has been done to correct the deficiencies identified in the audit?

Question 13 options:

	Alert the audit committee.
	Check with the unit concerned if actions are planned that are likely to correct the deficiencies in a timely manner.
	Inform the manager of the internal audit department.
	Alert senior management.

Question 14 (1 point)

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Which of the following is not one of the top 10 technology risks facing organizations?

Question 14 options:

	Mobile computing.
	Cybersecurity.
	Use of older technology.
	IT governance.

Question 15 (1 point)

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What characteristic makes fraud risk unique?

Question 15 options:

	Intent
	Proficiency
	Rationalization
	Experience

Question 16 (1 point)

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Which of the following is not a benefit of used developed applications?

Question 16 options:

	Quick to develop and use.
	Very good for access prevention.
	More configurable and flexible.
	Readily available and at low cost.

Question 17 (1 point)

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The internal auditors IT function require them to focus on all the followings except?

Question 17 options:

	Auditing processed files and auditee's database
	Correcting errors observed in the auditee's files and database
	Ascertaining the efficiency of computer program in use by the auditee
	Review of transaction processing procedures

Question 18 (1 point)

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An auditor looking for fraudulent financial reporting examines journal entries against the financial statement elements, disaggregated transaction data for revenues, and has a specialist auditor check all accounting estimates. Which of the following would still escape detection after these tests?

Question 18 options:

	Management doubles a customer's regular parts order to inflate sales.
	Management reduces the value of several less important accounts directly on the financial statements
	Management deliberately omits recording an account receivable.
	Management uses specific identification to deliberately reduce the value of remaining inventory.

Question 19 (1 point)

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The internal audit report should NOT contain:

Question 19 options:

	The auditees responses to the recommendations made
	Conclusions drawn
	Purpose and scope of the audit
	Detailed descriptions of evidence collected

Question 20 (1 point)

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All the following are indicators of potential fraudulent activities except:

Question 20 options:

	Increase in managements efficiency
	Highly competitive market conditions and decreasing profitability levels
	Significant pressures on management to take abrupt decisions under pressure
	Rapid need for changes in profitability