IIA Exam IIA-CIA-Part1 Topic 8 Question 52 Discussion

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

Question #: 52
Topic #: 8

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 Armando at May 29, 2024, 06:58 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Ashley

4 months ago

Wow, this is a real minefield. I hope the auditor has a good pair of steel-toed boots to navigate this payroll process!

upvoted 0 times

...

Santos

4 months ago

Option A? Really? Telling the payroll manager about potential fraud? That's like asking a fox to guard the henhouse!

upvoted 0 times

Louvenia

4 months ago

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

upvoted 0 times

...

Justa

4 months ago

A) Speak to the payroll manager so he may investigate the auditor's observations.

upvoted 0 times

...

Laurena

5 months ago

I'll go with option D. The engagement supervisor is the right person to handle sensitive matters like this and ensure proper follow-up.

upvoted 0 times

Lon

4 months ago

It's important to escalate concerns like this to the right person for further action.

upvoted 0 times

...

Mireya

4 months ago

I agree, the engagement supervisor will know how to handle this situation properly.

upvoted 0 times

...

Sheridan

5 months ago

Option C is too drastic. We should follow proper protocols and gradually escalate the issue as per the organization's guidelines.

upvoted 0 times

...

Sherita

5 months ago

I believe we should stop the audit and report the findings to senior management immediately.

upvoted 0 times

...

Marsha

5 months ago

I agree with Vallie. It's important to investigate further before jumping to conclusions.

upvoted 0 times

...

Aide

5 months ago

I think option B is the best course of action. We need to thoroughly investigate the payments to confirm any potential fraud before escalating it to senior management.

upvoted 0 times