IIA-CIA-PART2 Question #199: Real Exam Question with Answer & Explanation

The correct answer is A. Determine which controls if any are in place to mitigate the fraud risks. After considering fraud scenarios and identifying and prioritizing fraud risks, the next immediate action for the internal auditor is to determine which controls are in place to mitigate those risks. This step involves assessing the effectiveness of existing controls and identify

Question

According to IIA guidance, which of re following actions should the internal auditor take immediately after having considered fraud scenarios and identified and prioritized fraud risks?

Options

ADetermine which controls if any are in place to mitigate the fraud risks
BFollow protocol for internal reporting and investigating fraud allegations
CResearch frauds that nave occurred t\ similar organizations
DIncorporate the fraud risk assessment into the engagement plan

Explanation

After considering fraud scenarios and identifying and prioritizing fraud risks, the next immediate action for the internal auditor is to determine which controls are in place to mitigate those risks. This step involves assessing the effectiveness of existing controls and identifying any gaps where controls may be insufficient or absent. Understanding the control environment is crucial for developing a comprehensive fraud risk assessment and ensuring that appropriate measures are in place to prevent and detect fraud.

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