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NEW QUESTION 29

The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

A. Opportunity.
B. Commitment.
C. Rationalization.
D. Pressure or incentive.

Answer: D

NEW QUESTION 30

Which of the following best describes the assessment of risks?

A. Assess the likelihood and/or impact of risk on the achievement of organizational objectives.
B. Assess alternative strategies to reduce or eliminate major risks.
C. Assess the amount of risk an organization can accept while pursuing its objectives.
D. Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.

Answer: A

NEW QUESTION 31

A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO).

Which of the following would impair the internal audit function's independence?

A. The CFO provides feedback on the CAE's audit reports.
B. The CFO determines the scope of internal audit work in the accounting department.
C. The CFO administers the annual evaluation process for the internal auditors.
D. The CFO manages the accounting of the budget for the internal audit function.

Answer: B

NEW QUESTION 32

In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers' accounts?

A. The customer service department is not forwarding complaints to the accounts receivable department.
B. Employees are submitting fraudulent expense reports.
C. Invoices are not being mailed to customers.
D. An employee is tampering with customer checks.

Answer: D

NEW QUESTION 33

According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?