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NEW QUESTION 38
Which of the following internal controls is likely to prevent pollution from waste disposal before it occurs, rather than detect it after it occurs?

• A. Identification of large budget variances in disposal costs for hazardous chemicals.
• B. Restricted access to environmental department files.
• C. Samples of water and solid waste taken daily with the results recorded in a log.
• D. Formal on-the-job training program conducted by the environmental staff.

Answer: D

NEW QUESTION 39
Which of the following would most likely be considered a red flag for fraud?

• A. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
• B. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
• C. An organization lacks a whistleblower hotline for reporting suspicious activity.
• D. An employee in charge of payroll disbursements has rotated these duties with several colleagues.

Answer: B

NEW QUESTION 40
A chief audit executive (CAE) identifies that the internal audit activity lacks a necessary skill to perform a management request for a consulting engagement. According to IIA guidance, which of the following is the most appropriate action the CAE should take regarding the request?

• A. Supervise the assigned internal auditors throughout the engagement.
• B. Allow the internal auditors to acquire the needed skills while performing the engagement.
• C. Decline the engagement request.
• D. Assign the engagement to a more senior internal auditor.

Answer: C

NEW QUESTION 41
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