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NEW QUESTION 33
In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers' accounts?

• A. An employee is tampering with customer checks.
• B. Invoices are not being mailed to customers.
• C. Employees are submitting fraudulent expense reports.
• D. The customer service department is not forwarding complaints to the accounts receivable department.

Answer: A

NEW QUESTION 34
While reviewing first quarter sales transactions,an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer's account number was not found in the customer master file. In this scenario,which of the following controls was lacking?

• A. Preventive control.
• B. Detective control.
• C. Directive control.
• D. Corrective control.

Answer: D

NEW QUESTION 35
A manufacturing organization discovers that the waste water released has failed to meet permitted limits.
Which control function will be least effective in correcting the issue?

• A. Posting signs that tell employees which substances may be disposed of via sinks and floor drains within the facility.
• B. Diluting pollutants by flushing sinks and floor drains daily with large volumes of clean water.
• C. Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.
• D. Establishing a preventive maintenance program for the pretreatment system.

Answer: B

NEW QUESTION 36
A code of business conduct provides?

• A. A fraud avoidance plan that does not explicitly describe punishments for violations.
• B. A program to anonymously report irregularities to authorities.
• C. A passive method of fraud deterrence.
• D. An alternative to "tone at the top" programs.

Answer: C

NEW QUESTION 37
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

• A. All employees.
• B. Internal audit activity.
• C. Senior management
• D. Board of directors.

Answer: B

NEW QUESTION 38
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