QUESTION: 269

According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

The employee's name listed on organization's payroll is compared to the personnel records.
Payroll time sheets are reviewed and approved by the timekeeper before processing.
Employee access to the payroll database is deactivated immediately upon termination.
Changes to payroll are validated by the personnel department before being processed.

Answer(s): B

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During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

The audit supervisor should include the new contracts in the finding for the final audit report.
The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.
The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.
The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.

Answer(s): B

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QUESTION: 271

An internal auditor wants to determine whether employees are complying with the information security policy, which prohibits leaving sensitive information on employee desks overnight. The auditor checked a sample of 90 desks and found eight that contained sensitive information. How should this observation be reported, if the organization tolerates 4 percent noncompliance?

The matter does not need to be reported, because the noncompliant findings fall within the acceptable tolerance limit.
The deviations are within the acceptable tolerance limit, so the matter only needs to be reported to the information security manager.
The incidents of noncompliance fall outside the acceptable tolerance limit and require immediate corrective action, as opposed to reporting.
The incidents of noncompliance exceed the tolerance level and should be included in the final engagement report.

Answer(s): D

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QUESTION: 272

Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

Strategic plans reflect the organization's business objectives and overall attitude toward risk.
Strategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.
Strategic plans are likely to show areas of weak financial controls.
The strategic plan is a relatively stable document on which to base audit planning.

Answer(s): A

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Free IIA-ACCA Exam Braindumps (page: 68)

QUESTION: 269

QUESTION: 270

QUESTION: 271

QUESTION: 272