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NEW QUESTION 42
The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding acceptance of the money is correct?
- A. Accepting the money would be prohibited only if it were non-customary.
- B. Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization's code of conduct.
- C. Accepting the money would violate the IIA Code of Ethics.
- D. Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.
Answer: C
NEW QUESTION 43
Why are preventative controls generally preferred to detective controls?
- A. Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.
- B. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.
- C. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.
- D. Because preventive controls are more sensitive and identify more exceptions than detective controls.
Answer: B
NEW QUESTION 44
Which of the following statements is true about The IIA Global Internal Audit Competency Framework?
- A. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
- B. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
- C. The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.
- D. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.
Answer: C
NEW QUESTION 45
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