According to IIA guidance, which of the following statements is false regarding a review of the controls in place to prevent fraud?

Question

Options

• AThe review should focus on the efficiency of the controls in place to prevent fraud.
• BThe scope of the review does not need to include all operating areas of the organization.
• CThe cost of the control should be compared to the benefit of mitigating the related risk.
• DThe review should assess whether the internal controls can be circumvented.

• A
  84% (49)
• B
  5% (3)
• C
  9% (5)
• D
  2% (1)

Explanation

According to IIA guidance, the focus of a review of controls to prevent fraud should be on the effectiveness rather than the efficiency of the controls. Effectiveness pertains to whether the controls adequately mitigate fraud risks and prevent fraudulent activities, while efficiency focuses on the performance and cost-effectiveness of the controls, which is not the primary concern in preventing fraud. This makes statement A false in the context of IIA guidance.

No community discussion yet for this question.