IIA-CIA-PART2 · Question #55
Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?
The correct answer is A. Improper segregation of duties. Improper segregation of duties is a fundamental control weakness that significantly increases the risk of fraud. When one individual has control over multiple stages of a financial transaction or operational process, it creates opportunities for fraudulent activities to occur…
Question
Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?
Options
- AImproper segregation of duties.
- BIncentives and bonus programs.
- CAn employee's reported concerns.
- DLack of an ethics policy.
How the community answered
(38 responses)- A84% (32)
- B5% (2)
- C3% (1)
- D8% (3)
Explanation
Improper segregation of duties is a fundamental control weakness that significantly increases the risk of fraud. When one individual has control over multiple stages of a financial transaction or operational process, it creates opportunities for fraudulent activities to occur and remain undetected. While incentives and bonus programs (Option B), employee concerns (Option C), and lack of an ethics policy (Option D) are also important indicators of potential fraud risk, they do not present as direct and immediate a vulnerability as improper segregation of duties.
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