Topic 2, Volume B
An internal quality assessment of the internal audit activity should provide the chief audit executivewith.
A.
Recommendations for improvement.
B.
Objectives for internal audit engagements.
C.
Confirmation of action on past audit recommendations.
D.
Appraisals of internal audit staff performance.
Recommendations for improvement.
According to the Standards,which of the following must an internal auditor take into
consideration when performing an assurance engagement of treasury operations?
I.The audit committee has requested assurance of the treasury department's compliance
with a new policy on the use of financial instruments.
II.Treasury management has not instituted any risk management policies.
III.Due to the recent sale of a division,the amount of cash and marketable securities
managed by the treasury department has increased by 350 percent.
IV.The external auditors have indicated some difficulties in obtaining account confirmations.
A.
I and IIonly
B.
I and IVonly
C.
I,II,and IIIonly
D.
II,III,and IVonly
I,II,and IIIonly
Management should be included in the development of the audit plan in order to:
A.
Provide assurance that past audit recommendations have been properly implemented.
B.
Select the audit tests that will be used for each engagement.
C.
Verify that the highest risks are included in the risk-based audit plan.
D.
Guarantee access to the organization's sites and records for audit work.
Verify that the highest risks are included in the risk-based audit plan.
A dental insurance provider has implemented an electronic claim submission process and
is concerned that dentists are submitting claims for services that were not provided. Which
of the following control procedures would be most effective in preventing this type of fraud?
A.
Develop a program that identifies procedures performed on an individual which are
either in excess of expectations based on the age of the insured or are similar to other
procedures recently performed on the individual.
B.
Require all submitted claims to be followed by a signed statement by the dentist
testifying to the fact that the claimed procedures were performed.
C.
Send confirmations to the dentists requesting them to confirm the exact nature of the
claims submitted to the insurance provider.
D.
Develop an integrated test facility and submit false claims to verify that the system is
detecting such claims on a consistent basis.
Develop a program that identifies procedures performed on an individual which are
either in excess of expectations based on the age of the insured or are similar to other
procedures recently performed on the individual.
Which of the following actions by a chief audit executive would be most effective in preventing fraud?
A.
Ensure that the board is aware of all fraud that has been identified or reported.
B.
Train the internal audit staff in identifying fraud indicators.
C.
Review the adequacy of all policies that describe prohibited activities.
D.
Submit an annual report to the board on all fraud that has been detected.
Review the adequacy of all policies that describe prohibited activities.
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