IIA Exam IIA-CIA-Part2 Topic 7 Question 61 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam

Question #: 61
Topic #: 7

An internal auditor wanted to determine whether the organization's 200 employees are charging their work hours accurately to the correct project. The internal auditor selected a sample of 30 employee time reports for testing. Based on the testing, the internal auditor determined the following:

- 5 Time reports were incorrect.

- 21 Time reports were correct.

- 4 Time reports were not supported.

AThe organization has significant flaws in its reporting of employee time, which could lead to the overstatement of project labor costs. The organization's failure to report accurate and complete employee time could lead to potential fraud and abuse.

BThe organization needs to ensure that all reporting of employee time is accurate and complete for each of its projects By dang so the organization can minimize potential issues related to overstating employee tames and labor project costs.

CThe organization overstated project costs due to inaccurate and incomplete reporting of employee time charged to the affected accounts As a result the organization cannot ensure at protects costs are accurately reported to stakeholders

DThe organization generally ensured that employee hours charged to each project were accurate and complete. However, there were instances of employee time reports that were incorrect or not supported to justify the multiple project labor coats

Show Suggested Answer

Suggested Answer: C

by Flo at Jul 05, 2023, 08:06 AM

Limited Time Offer

25%

19 days ago

I think option A is concerning. Overstating project labor costs due to inaccurate reporting could lead to fraud.

upvoted 0 times

...