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IQN QIA - Qualified Internal Auditor

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Total 80 questions

Your assurance firm is auditor of Happy Goods. The audit manager has just become engaged to the managing director’s daughter, who he met through a mutual friend. The managing director owns 51% of the shares in Happy Goods. Which of the threat is not there in this case?

A.

Intimidation threat

B.

Familiarity threat

C.

Self-interest threat

D.

Advocacy threat

In order for internal auditors to be able to recognize potential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?

A.

Intentional deception.

B.

Taking unfair or dishonest advantage.

C.

Perpetration for the benefit or detriment of theorganization.

D.

Negligence on the part of executive management.

Why should organizations require auditees to promptly reply and outline the corrective action that has been implemented on reported deficiencies?

A.

To close the open audit issues as soon as possible.

B.

To effect savings as early as possible.

C.

To indicate concurrence with the audit findings.

D.

To ensure that the auditor performance is evaluated.

The auditor wants to understand the actual flow of data regarding cash processing. The most convincing evidence would be obtained by

A.

Reviewing the systems flowchart.

B.

Performing a "walk-through" of the processing and obtaining copies of all documents used.

C.

Reviewing the programming flowchart for evidence of control procedures placed into the computer programs.

D.

Interviewing the treasurer.