Question 21 (1 point)

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A company maintains a fleet of delivery vans to distribute its products from a central warehouse. Each van is stocked with an inventory of saleable goods, which is replenished regularly. The internal auditor notes a pattern of unexplained inventory shortages. Which of the following suggests a control weakness providing an opportunity for fraud?

Question 21 options:

	Only select managers have keys to the storeroom.
	Van inventory lists are reconciled by purchasing rather than shipping.
	Written corporate policies exist describing prohibited activities.
	Delivery personnel take their delivery vans home at night.

Question 22 (1 point)

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A password is an example of:

Question 22 options:

	An edit control.
	A firewall access control.
	A physical control.
	A digital control.

Question 23 (1 point)

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Which of the following is an impact factor of the risk of management override of controls to manipulate reported earnings?

Question 23 options:

	Harm to the firm's reputation
	Complexity of accounting methods
	Loose ethical standards set at the top
	Management turnover levels

Question 24 (1 point)

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Which of the following is not part of an organizations IT governance committees several important responsibilities?

Question 24 options:

	Overseeing changes to IT systems
	Monitoring IT security procedures
	Aligning investments in IT with business strategies.
	Designing IT application based controls.

Question 25 (1 point)

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Which of the following would not be considered a condition that indicates higher likelihood of fraud?

Question 25 options:

	An individual in charge of marketable securities is responsible for making purchases, recording the purchases and reporting discrepancies and gains or losses to senior management.
	Managements delegation of authority to a subordinates for purchases under certain dollar limit.
	No clear assignment of responsibility and accountability in the account receivable department.
	An individual has held same cash handling position for a long period without rotation.

Question 26 (1 point)

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Which of the following is true about new and emerging technologies?

Question 26 options:

	They have security login controls built in them.
	They always come from large multinational companies
	They have best controls embedded in them.
	They take time for users to transition and adapt to them so training is critical.

Question 27 (1 point)

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The purpose of logical security controls is to:

Question 27 options:

	Restrict access to data.
	Record processing results
	Limit access to computer hardware.
	Ensure complete and accurate processing of data.

Question 28 (1 point)

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Common Audit software can perform the following except:

Question 28 options:

	Data analyses
	Record examination
	Database adjustments
	Data comparison

Question 29 (1 point)

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People who commit fraud may be able to rationalize their actions as below except:

Question 29 options:

	Justified because the victim deserved it
	Harmless because the victim is large enough to absorb the impact
	Necessary especially when done for the business
	It can help management to strengthen the control system

Question 30 (1 point)

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With respect to generalized audit software (GAS), which of the following is NOT expected of the internal auditors?

Question 30 options:

	Keep current with leading edge technology being considered by their organization
	Understand how the new technology will affect the organizations processes.
	Compel management to develop corporate computer policies and standards
	Understand risks and controls associated with current technology