QUESTION: 65 Exam Topic: 1, Volume A

Which of the following procedures would be most helpful in providing additional evidence when an auditor suspects that an unidentified employee is submitting and approving invoices for payment?

Use generalized audit software to identify invoices from vendors with post office box numbers or other unusual features. Select a sample of those invoices and trace to supporting documents such as receiving reports.
Select a sample of payments made during the year and investigate each one for approval.
Select a sample of receiving reports representative of the period under investigation and trace to approved payment. Note any items not properly processed.
Select a sample of invoices paid during the past month and trace them to appropriate vendor accounts.

Answer(s): A

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QUESTION: 66 Exam Topic: 1, Volume A

Insurance companies often receive electronic hospitalization claims directly from hospitals. Which of the following control procedures would be most effective in detecting fraud in such an environment?

Use integrated test facilities to test the accuracy of processing in a manner that is transparent to data processing.
Develop monitoring programs to identify unusual types of claims or an unusual number of claims by demographic class for investigation by the claims department.
Use generalized audit software to match the claimant identification number with a master list of valid policyholders.
Develop batch controls over all items received from a particular hospital and process those claims in batches.

Answer(s): B

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QUESTION: 67 Exam Topic: 1, Volume A

During an audit of executive travel, an auditor noted that the president's travel expense reimbursements were approved by an executive secretary who reported to the president. The organization's reimbursement policy requires all travel expense reimbursements to be approved by the traveler's supervisor, but it does not address the president's reimbursements. Which of the following represents the auditor's best recommendation in this situation?

The organization's reimbursement policy should be amended to grant the president's executive secretary the authority to approve the president's travel expense reimbursements.
The approval policy for executive travel should be considered at the next meeting of the audit committee of the board of directors.
The president's travel expense reimbursements should be reviewed and approved by the chief financial officer.
The president's noncompliance should be considered immaterial.

Answer(s): B

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QUESTION: 68 Exam Topic: 1, Volume A

Which of the following, if observed, would not indicate the need to extend the search for other indicators of fraud in a purchasing department?

The standard of living of one of the purchasing agents has increased.
The internal control structure has significant weaknesses.
The purchasing agents have convinced management to adopt a policy of paying vendors on a more timely basis in order to avoid incurring penalty charges.
The cost of goods procured seems to be excessive in comparison with previous years.

Answer(s): C

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Free IIA-CIA-Part2 Exam Braindumps (page: 17)

QUESTION: 65 Exam Topic: 1, Volume A

QUESTION: 66 Exam Topic: 1, Volume A

QUESTION: 67 Exam Topic: 1, Volume A

QUESTION: 68 Exam Topic: 1, Volume A