Exam IIA-CIA-Part1 topic 1 question 1 discussion

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

Question #: 1
Topic #: 1

The top three sales representatives for a company consistently include non-allowable charges on their expense reports. Line management is reluctant to deny reimbursement of the charges for fear of losing the sales representatives. This situation has the greatest negative impact on which of the following internal control components?

A. Monitoring.
B. Control environment.
C. Information and communication.
D. Control activities.

Show Suggested Answer

Suggested Answer: B 🗳️

by ACH at Dec. 2, 2019, 8:35 a.m.

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OD1N

3 days, 14 hours ago

Selected Answer: B

Are CIA parts 1 to 3 still valid here? Has anyone taken a exam recently?

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Ammad45

2 months, 2 weeks ago

Management is by passing the controls by allowing the reimbursement to sale representative. that is why answer is control environment.

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Leanna

4 years, 6 months ago

Control Environment

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ACH

5 years ago

Hello I do not understand why answer choice is control environment and not control activities. Thank you

upvoted 1 times

chung002

4 years ago

The fact that management is aware but does not enforce for fear of losing the salesperson shows that the controls culture is weak in the control environment.

upvoted 4 times

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Samir1055

4 years, 10 months ago

Concealing facts about fraud is violence of ethics of conduct, core values. Ethics is one of the key element of control environment.

upvoted 5 times

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thabash

3 years, 9 months ago

because the topic is related to ethics of the salesmen , any ethics issue is affect the control enviornment

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