QUESTION: 9

When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.

4. Losing bidders are hired as subcontractors.

1 only
2 only
1 and 3.
2 and 4.

Answer(s): D

Reveal Solution Next Question

QUESTION: 10

Which of the following combinations of conditions is most likely a red flag for fraud?

The practice of surprise audits and the implementation of an employee support program.
Hiring an employee with a prior fraud conviction and yearly management review.
Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.
A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Answer(s): C

Reveal Solution Next Question

QUESTION: 11

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Observation of the facility during operations.
Questioning of facility management, including the facility safety officer.
Analysis of facility operating reports, focusing on instances when breakdowns occurred.
Review of records involving safety violations, filed by facility production employees.

Answer(s): A

Reveal Solution Next Question

QUESTION: 12

While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses.
Which of the following actions are most appropriate for the senior auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.

1 and 2.
1 and 3.
2 and 3.
2 and 4.

Answer(s): C

Reveal Solution Next Question

Free IIA-ACCA Exam Braindumps (page: 3)

QUESTION: 9

QUESTION: 10

QUESTION: 11

QUESTION: 12