IIA IIA-CIA-Part 1
The top three sales representatives for a company consistently include non-allowable charges
on their expense reports. Line management is reluctant to deny reimbursement of the charges
for fear of losing the sales representatives. This situation has the greatest negative impact on
which of the following internal control components?
B. Control environment.
C. Information and communication.
D. Control activities.
Which of the following factors affects the control risk of a company?
A. Potential problems like technological obsolescence.
B. Unusual pressures on management.
C. Complex accounts that require expert valuations.
D. Segregation of duties.
Human resources and payroll are separate departments. Which of the following combinations
would provide the best segregation of duties?
A. Human resources personnel add employees,payroll personnel process hours,and human
resources personnel deliver paychecks to employees.
B. Human resources personnel add employees,review and submit payroll hours to the payroll
department for processing,and deliver paychecks to employees.
C. Human resources personnel add employees,and payroll personnel process hours and enter
employee bank account numbers. Paychecks are automatical y deposited in the employee's
D. Payroll personnel add employees and enter employee bank account numbers but process
hours only as approved by the human resources department. Paychecks are automatically
deposited in the employee's bank account.
Which of the following is an appropriate role for the board in governance?
A. Preparing written organizational policies that relate to compliance with
laws,regulations,ethics,and conflicts of interest.
B. Ensuring that financial statements are understandable,transparent,and reliable.
C. Assisting the internal audit activity in performing annual reviews of governance.
D. Working with the organization's attorneys to develop a strategy regarding current
litigation,pending litigation,or regulatory proceedings governance.