IIA Exam IIA-CIA-Part1 Topic 2 Question 47 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 47
Topic #: 2

An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?

ASpeak to the payroll manager so he may investigate the auditor's observations.

BContinue to investigate the payments to confirm the accuracy of the observations, and determine whether further fraudulent payments have been made.

CStop the audit and report the findings to senior management immediately.

DEscalate the concern to the engagement supervisor.

Show Suggested Answer

Suggested Answer: C

by Izetta at Apr 11, 2024, 01:42 AM

Limited Time Offer

25%

Off

Get Premium IIA-CIA-Part1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Mi

4 months ago

I agree with Bette, we need to confirm the accuracy of the observations before making any decisions.

upvoted 0 times

...

Audry

4 months ago

I think we should gather more evidence before taking any action.

upvoted 0 times

...

An

4 months ago

I agree with Erinn, we need to escalate this concern to the engagement supervisor.

upvoted 0 times

...

Erinn

4 months ago

I think stopping the audit and reporting to senior management is the most ethical choice.

upvoted 0 times

...

Bette

5 months ago

I disagree, I believe we should continue to investigate the payments.

upvoted 0 times

...

Desiree

5 months ago

I think the best course of action is to speak to the payroll manager.

upvoted 0 times

...

Broderick

5 months ago

I understand your point, User3. It's important to consider all possibilities and make sure the right steps are taken to address the situation.

upvoted 0 times

...

Mike

6 months ago

But what if the payroll manager is involved in the fraud? Shouldn't we escalate the concern to senior management immediately?

upvoted 0 times

...

Beatriz

6 months ago

I agree with User1, we need to make sure there are no further fraudulent payments being made.

upvoted 0 times

...

Ernie

6 months ago

I think the best course of action is to continue investigating the payments to confirm the accuracy of the observations.

upvoted 0 times

...

Krystina

7 months ago

I'm with Lilli on this one. If I smell a rat, I'm not going to just sit on it. Option C all the way - blow the whistle and let the higher-ups deal with it. They can decide if we need to investigate further or not.

upvoted 0 times

...

Roosevelt

7 months ago

Ah, the age-old dilemma of the auditor - when to sound the alarms and when to keep digging. I think I'd go with option B as well. Better to have a solid case before we bring in the big guns. Plus, who knows, maybe it's just an innocent mistake. 'Innocent mistake' - yeah, right, like that ever happens in payroll!

upvoted 0 times

...

Rebecka

7 months ago

Hmm, I can see the merit in both options B and C. But I think I might lean more towards option D - escalating the concern to the engagement supervisor. They might have a better handle on the appropriate next steps and can provide guidance on the best course of action.

upvoted 0 times

...

Lilli

7 months ago

I'm not so sure. If I suspect fraud, I'd want to get it in front of senior management as soon as possible. Option C might be the way to go - stop the audit and report it right away. No need to wait and let the fraud potentially continue.

upvoted 0 times

Sylvie

6 months ago

But shouldn't we also continue to investigate to confirm the accuracy of the observations? Option B could be important too.

upvoted 0 times

...

Candra

6 months ago

I agree. It's important to escalate the concern to senior management as soon as possible.

upvoted 0 times

...

Shawnda

6 months ago

I think we should stop the audit and report the findings. Option C seems like the best course of action.

upvoted 0 times

...

Sunny

7 months ago

I agree with Gracia. Option B seems like the best approach. We don't want to jump the gun, but we also can't ignore potential fraud. Keeping the investigation going while gathering more evidence is the responsible thing to do.

upvoted 0 times

...

Gracia

7 months ago

Hmm, this is a tricky one. As an auditor, I need to balance the need for thorough investigation with the urgency of addressing potential fraud. I'm leaning towards option B - continuing the investigation to confirm the observations and determine the extent of any fraudulent payments. That way, I can provide a comprehensive report to management.

upvoted 0 times

...