Exam 16: Internal Audits governmental Audits and Fraud Examinations

Few fraud auditors believe in the concept of an "immaterial fraud" because ________________________ and ________________________________________. Question also found in study guide

Generally,fraud examiners are called when a fraud is already known or suspected.The term that means a reason to believe a fraud has occurred is

Management has instated a new grievance process.When an employee has a grievance a manager,in another department is assigned as an independent mediator to evaluate the employee's complaint.That manager must submit a written report to the Vice President of Human Resources,who must act on the report and discuss the resolution with the employee,the employee's manager,and any other relevant personnel. Management acknowledges that this process will mean that an employee will be paid for several hours of work during the grievance process and several managers will spend time in the process.However,this process will likely reduce employee turnover. This process has been in place for 18 months.Management wants to know what the costs are for the grievance process and if the new process is achieving the stated objective of reducing employee turnover.What type of audit would internal perform?

A fraud examination has four main objectives: (1)determining whether a fraud exists,(2)determining ______________________,_________________________________,and ________________________________. Question also found in study guide

The work of internal auditors may affect the independent auditor's

____________________ auditing refers to the study of business operations for the purpose of making recommendations about ____________________ and ____________________ use of resources. Question also found in study guide

Performance audits determine whether an entity's program has resulted in the desired outcomes.

In a fraud investigation,the first objective is

The ___________________ is the federal law that established uniform requirements for audits of federal financial assistance provided to _________ and _________ governments. Question also found in study guide

When considering the competence of internal auditors,external auditors should obtain evidence about the

The proper organizational role of internal auditing is to

A typical objective for internal auditors in the company's sustainability program is for the auditor to

Senior management has ordered a compliance audit of the organization's employee benefits package.Which of the following do both the chief audit executive and senior management consider a primary engagement objective?

When independent CPAs in public practice take engagements to audit government units or financial assistance recipients,they must follow

The U.S.Government Accountability Office (GAO)standards do not specifically require a written report in financial statement audits for

The state Department of Education needs to have audits for various reasons.For each reason,indicate the related type of engagement or practice that would most likely be performed.

Which of the following would not be an objective of a fraud investigation?

Auditors of governmental units would not be presumed to be independent if they are

The Single Audit Act of 1984 requires an annual audit of all governments,agencies,and nonprofit organizations that

During the audit of a corporation's major division,an auditor interviewed an accounting clerk.The clerk told the auditor that she believes that the division has been capitalizing research and development expenses (GAAP requires that all R&D costs be charged to ordinary expense in the period in which they are incurred).R&D is a significant part of the division's budget.If this information is found to be true,the division may have to expense millions of dollars previously capitalized and significantly reduce its operating profit.The auditor has not performed any testing to determine whether this problem actually exists but has discussed the potential problem with the division controller and you,the director of internal audit. The following day,you received the following e-mail from the company president: The controller of Division B informs me that you have discovered a questionable account classification dealing with research and development expense.I am aware of the issue.You are directed to discontinue any further investigation of this matter until I inform you to proceed.Under the confidentiality standard of your profession,I also direct you not to discuss this matter with other managers,the audit committee,or the outside auditors. As the director of internal audit,write a short memo in response to the president's e-mail.Be sure to explain the position you are taking and why this position is appropriate.