IIA Exam IIA-CIA-Part1 Topic 4 Question 63 Discussion

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

Question #: 63
Topic #: 4

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 Gail at Sep 15, 2024, 09:09 AM

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Tu

5 months ago

I believe escalating the concern to the engagement supervisor would be the most appropriate action in this situation.

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Annamaria

5 months ago

I agree with Afton. It's important to gather more evidence before taking any further steps.

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Margarett

5 months ago

Option B is the most prudent choice. Auditors should always double-check their findings to avoid false alarms. Wouldn't want to be the one who cried wolf!

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Afton

5 months ago

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

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Elvis

5 months ago

I like option B. It's important to gather all the evidence before taking any drastic measures. Jumping the gun could make the situation worse.

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Marisha

5 months ago

Option D is the way to go. This is a serious concern, and the engagement supervisor should be informed immediately to ensure proper handling.

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Scarlet

4 months ago

That's a good point. It's best to go directly to the engagement supervisor.

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Sophia

4 months ago

What if the payroll manager is involved in the fraudulent activity?

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Amie

4 months ago

Yes, I agree. They need to be informed right away.

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Whitney

5 months ago

I think we should escalate this concern to the engagement supervisor.

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Lasandra

5 months ago

I think option B is the best course of action. We need to thoroughly investigate the payments to confirm the accuracy of the observations before escalating the issue.

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Renato

5 months ago

Let's gather more evidence to confirm our suspicions before escalating the issue.

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Reynalda

5 months ago

I agree, we need to make sure our observations are accurate before taking further action.

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Marvel

5 months ago

I agree with Lasandra. Jumping straight to senior management without confirming the findings could cause unnecessary panic. Let's get the facts first.

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