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NEW QUESTION 28
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.
NEW QUESTION 29
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.
- A. 2. 3, and 4.
- B. 1,2, and 4.
- C. 1.3, and 4.
- D. 1.2, and 3.
NEW QUESTION 30
While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer’s account number was not found in the customer master file. In this scenario, which of the following controls was lacking?
- A. Corrective control.
- B. Detective control.
- C. Preventive control.
- D. Directive control.
NEW QUESTION 31
According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?
- A. CAE meets privately with The board at least annually.
- B. CAE reviews and approves the annual audit plan.
- C. CAE meets privately with The CEO at least annually.
- D. CAE reports to the board regarding audit staff performance evaluation and compensation.
NEW QUESTION 32
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