IIA Exam IIA-CIA-Part1 Topic 2 Question 47 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 47
Topic #: 2

An internal auditor assessed the controls within his organization's payroll process and suspects that erroneous payments may have been made to a fraudulent bank account. What is the best course of action for the auditor to take?

ASpeak to the payroll manager so he may investigate the auditor's observations.

BContinue to investigate the payments to confirm the accuracy of the observations, and determine whether further fraudulent payments have been made.

CStop the audit and report the findings to senior management immediately.

DEscalate the concern to the engagement supervisor.

Show Suggested Answer

Suggested Answer: C

by Izetta at Apr 11, 2024, 01:42 AM

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Beatriz

1 days ago

I agree with User1, we need to make sure there are no further fraudulent payments being made.

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Ernie

2 days ago

I think the best course of action is to continue investigating the payments to confirm the accuracy of the observations.

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Krystina

24 days ago

I'm with Lilli on this one. If I smell a rat, I'm not going to just sit on it. Option C all the way - blow the whistle and let the higher-ups deal with it. They can decide if we need to investigate further or not.

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Roosevelt

26 days ago

Ah, the age-old dilemma of the auditor - when to sound the alarms and when to keep digging. I think I'd go with option B as well. Better to have a solid case before we bring in the big guns. Plus, who knows, maybe it's just an innocent mistake. 'Innocent mistake' - yeah, right, like that ever happens in payroll!

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Rebecka

27 days ago

Hmm, I can see the merit in both options B and C. But I think I might lean more towards option D - escalating the concern to the engagement supervisor. They might have a better handle on the appropriate next steps and can provide guidance on the best course of action.

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Lilli

28 days ago

I'm not so sure. If I suspect fraud, I'd want to get it in front of senior management as soon as possible. Option C might be the way to go - stop the audit and report it right away. No need to wait and let the fraud potentially continue.

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Sunny

1 months ago

I agree with Gracia. Option B seems like the best approach. We don't want to jump the gun, but we also can't ignore potential fraud. Keeping the investigation going while gathering more evidence is the responsible thing to do.

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Gracia

1 months ago

Hmm, this is a tricky one. As an auditor, I need to balance the need for thorough investigation with the urgency of addressing potential fraud. I'm leaning towards option B - continuing the investigation to confirm the observations and determine the extent of any fraudulent payments. That way, I can provide a comprehensive report to management.

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