IIA-CIA-PART2 · Question #156
According to MA guidance, which of the following factors should an internal auditor consider when assessing the likelihood of fraud risk1?
The correct answer is C. Past fraud allegations and actual occurrences. According to MA (Management Accounting) guidance and internal auditing standards, when assessing the likelihood of fraud risk, internal auditors should consider historical data and patterns within the organization. Past fraud allegations and actual occurrences provide valuable…
Question
According to MA guidance, which of the following factors should an internal auditor consider when assessing the likelihood of fraud risk1?
Options
- AThe effect on the organization's reputation
- BAny potential damage to the organization's relationship with customers.
- CPast fraud allegations and actual occurrences
- DThe potential and realized financial impacts
How the community answered
(40 responses)- A3% (1)
- B5% (2)
- C90% (36)
- D3% (1)
Explanation
According to MA (Management Accounting) guidance and internal auditing standards, when assessing the likelihood of fraud risk, internal auditors should consider historical data and patterns within the organization. Past fraud allegations and actual occurrences provide valuable insights into potential vulnerabilities and areas where controls might have previously failed. This historical perspective helps in evaluating the current fraud risk environment and in identifying areas that require stronger controls or more vigilant monitoring.
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