Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IIA Exam IIA-ACCA Topic 7 Question 72 Discussion

Actual exam question for IIA's IIA-ACCA exam
Question #: 72
Topic #: 7
[All IIA-ACCA Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Noah at Mar 20, 2024, 10:54 AM

Limited Time Offer

25%

Off

Get Premium IIA-ACCA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Barrett
2 months ago
I'm going with the documented policy and procedures. Who needs controls when you can just have a nicely written document telling people not to be naughty?
upvoted 0 times
Fredric
1 months ago
C) Periodic account reconciliation of contractor charges.
upvoted 0 times
...
Shenika
1 months ago
B) Documented policy and procedures.
upvoted 0 times
...
Emogene
1 months ago
A) Exception report identifying payment anomalies.
upvoted 0 times
...
...
Meaghan
3 months ago
Periodic account reconciliation? Pfft, that's too much work. I'm going with the exception report - let the computer do all the heavy lifting, am I right?
upvoted 0 times
Martina
1 months ago
User 3: I think having both the exception report and periodic account reconciliation would be the most effective approach.
upvoted 0 times
...
Rupert
1 months ago
User 2: But what if the fraud is happening in between the exceptions? Maybe the periodic account reconciliation is necessary.
upvoted 0 times
...
Fanny
1 months ago
User 1: I agree, the exception report is definitely the easiest option.
upvoted 0 times
...
Isreal
2 months ago
User 3: Monthly management review could also be helpful in detecting fraud.
upvoted 0 times
...
Stephen
2 months ago
User 2: But what about the importance of documented policies and procedures?
upvoted 0 times
...
Audrie
2 months ago
User 1: I agree, let the computer do the work with the exception report.
upvoted 0 times
...
...
Aleisha
3 months ago
Hah, these auditors are really trying to trip us up! I bet they're sitting back laughing at all the poor souls who fall for the 'least effective' trap.
upvoted 0 times
...
Edna
3 months ago
I'd say the monthly management review is the least effective. Fraudsters are usually pretty clever at covering their tracks, so that might not catch much.
upvoted 0 times
...
Brittney
3 months ago
Option B is the least effective. Documented policies and procedures don't really detect fraud on their own. You need actual controls and oversight.
upvoted 0 times
Marvel
2 months ago
C) Periodic account reconciliation of contractor charges.
upvoted 0 times
...
Catarina
2 months ago
B) I agree, documented policies and procedures are important but they are not enough to detect fraud.
upvoted 0 times
...
Cherelle
2 months ago
A) Exception report identifying payment anomalies.
upvoted 0 times
...
...
Twila
3 months ago
I disagree. I believe A) Exception report identifying payment anomalies would be the least effective, as it may not capture all types of fraud.
upvoted 0 times
...
Sue
3 months ago
I agree with Sean. Monthly reviews may not catch fraud as quickly as the other options.
upvoted 0 times
...
Sean
4 months ago
I think the least effective control would be D) Monthly management review of all contractor activity.
upvoted 0 times
...

Save Cancel