IIA IIA-CIA-Part1 Dumps Questions Answers

When faced with a potential conflict of interest, as in the case where an internal auditor learns of a large loan made to another auditor's relative, the appropriate action is to refer the matter to higher authorities within the organization. Option B, having the chief audit executive and management determine whether the auditor should continue with the audit engagement, ensures that any potential conflict is managed properly and maintains the integrity of the audit process.

The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing.

A consulting engagement, as opposed to an assurance engagement, is characterized by the auditor providing advice and recommendations upon request. In option C, an internal auditor assessing the cost-effectiveness of a new customer service system initiative represents a consulting role where the auditor provides expertise to aid decision-making, rather than verifying compliance or control effectiveness.

Institute of Internal Auditors (IIA) Standards and Guidelines.

Comparing vendor addresses to employee addresses is a common audit test to detect fictitious invoices. Fictitious invoices are often created by employees who use their addresses or addresses of associates as vendor addresses to facilitate fraud.

Option B: Matching cancelled checks to invoices ensures payment was made but does not specifically detect fictitious invoices.

Option C: Searching for duplicate payments addresses duplicate invoices but not necessarily fictitious ones.

Option D: Checking employee bank records could indicate fraud but is invasive and less direct than comparing addresses.

IIA Practice Guide: Fraud Detection.

COSO Fraud Risk Management Guide.