An Internal Auditor Has Been Asked to Conduct an Investigation

question 128

Multiple Choice

An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud. Which of the following controls would be least effective in detecting any potential fraudulent activity?

• A) Exception report identifying payment anomalies.
• B) Documented policy and procedures.
• C) Periodic account reconciliation of contractor charges.
• D) Monthly management review of all contractor activity.

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Definitions:

Aggressive Sexual Encounters

Interactions of a sexual nature that are forceful, coercive, or violent, lacking consent from one or more parties.

Mere Exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Novel Stimuli

Unfamiliar or new stimuli that an individual has not encountered before, which can elicit reactions or responses that are different from those to familiar stimuli.

Welcome Week Dance

A social event typically organized at the beginning of the academic year by educational institutions to welcome new students.