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Exam IIA-CIA-Part1 All Questions

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Exam IIA-CIA-Part1 topic 1 question 52 discussion

Actual exam question from IIA's IIA-CIA-Part1
Question #: 52
Topic #: 1
[All IIA-CIA-Part1 Questions]

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division. The use of an analytical review as a verification technique would not be a preferred approach if.

  • A. The auditor notes strong indicators of a specific fraud involving this account.
  • B. The company has relatively stable operations which have not changed much over the past year.
  • C. The auditor would like to identify large, unusual, or non-recurring transactions during the year.
  • D. The operating expenses vary in relation to other operating expenses, but not in relation to revenue.
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Suggested Answer: A 🗳️

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John1237
1 month, 3 weeks ago
There is a need for a specific fraud investigation procedure (Option A) and not just analytical reviews to understand operating expenses.
upvoted 2 times
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Umard
11 months ago
A should be correct because the operating expenses did not indicate any abnormally
upvoted 1 times
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Ivana2000
11 months, 1 week ago
It there is assumption for fraud .... fraud investigator should be involved, not the internal auditor by himself with analytical review
upvoted 1 times
Ivana2000
11 months, 1 week ago
So would not be preferred - A correct
upvoted 1 times
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basiclane
12 months ago
why inaccurate?
upvoted 1 times
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chung002
1 year, 7 months ago
if there is a fraud, the operating expenses would be inaccurate
upvoted 4 times
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C (25%)
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