QUESTION: 173

Which of the following types of fraud includes embezzlement?

Fraudulent statements.
Bribery.
Misappropriation of assets.
Corruption.

Answer(s): C

QUESTION: 174

An internal auditor needs to recommend a policy element to be included in an organization's code of ethics.
Which of the following recommendations would be most effective?

Ethics should vary with local customs in the organization's foreign operations.
Whistleblowing should be discouraged because it can cause distrust among employees.
Ethical behavior should be incorporated into performance evaluations.
Senior management should be granted specific exemptions to the code of ethics.

Answer(s): C

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The manager for an organization's accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months.
Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

An operations audit of the accounts payable department.
A consulting engagement related to a new accounts payable optimization initiative.
A review of the employees' sports club finances, which are overseen by the chief audit executive.
An assurance review for a sales program on which she previously provided consultation.

Answer(s): C

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QUESTION: 176

As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

Organizational independence.
Professional objectivity.
Due professional care.
Individual proficiency.

Answer(s): B

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QUESTION: 175

QUESTION: 176