Exam IIA-CIA-Part1 topic 5 question 36 discussion

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

Question #: 36
Topic #: 5

During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.
Which of the following tests would best help the internal auditor detect fraudulent activity?

A. Check inventory levels.
B. Search for gaps in check numbers.
C. Compare vendor summaries.
D. Review raw material purchase quantities.

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Suggested Answer: A 🗳️

by somara at Oct. 11, 2020, 4:59 p.m.

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thabash

1 year, 4 months ago

if there are shortage in stock , staff might print fake invoices to cover the shortage, so customers during reconciliation telling they didn't receive the materials, immediately make stock count to see where is the materials, and investigate it

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somara

1 year, 9 months ago

why is the answer A?

upvoted 1 times

John1237

1 month, 2 weeks ago

The internal auditor already knows that there are duplicate invoices. He/she will cancel them and look at the actual inventory flows (customer orders, raw material purchases, finished goods sales, etc.). Gaps in inventory levels would best help the internal auditor detect fraudulent activity

upvoted 1 times

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Exam IIA-CIA-Part1 topic 5 question 36 discussion

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thabash

somara

John1237

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