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IIA Exam IIA-CRMA Topic 3 Question 101 Discussion

Actual exam question for IIA's IIA-CRMA exam
Question #: 101
Topic #: 3
[All IIA-CRMA Questions]

An internal auditor is conducting an assessment of the organization's fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?

1. The organization uses an automated authority approval matrix to control payments.

2. The organization has a whistleblower hotline that is available to employees.

3. Annually, every manager completes a comprehensive fraud assessment of his or her department.

4. Annually, the organization reviews and communicates the code of expected behavior.

Show Suggested Answer Hide Answer
Suggested Answer: D

by Elliot at Apr 30, 2025, 12:52 AM

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Skye
29 days ago
Ha! Looks like the auditors are trying to trip us up with this one. I bet they're sitting back and chuckling, waiting to see who falls for the wrong answer. But I'm going with D - gotta keep those whistles blowing and the behavioral standards high!
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Hannah
30 days ago
Hmm, I don't know. The automated approval matrix sounds like a good control, but I'm not sure if it falls under the control environment. I'll have to think this one through a bit more.
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Albina
1 months ago
I'm not sure about that. While the whistleblower hotline is definitely part of the control environment, I think the annual fraud assessment by managers is also an important control activity. Maybe B is the way to go?
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Janae
4 days ago
Yes, that's correct. It's important to have a combination of control activities to effectively prevent fraud.
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Rolland
8 days ago
So, we are all in agreement that the correct answer is B, which includes activities 1 and 3.
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Zona
10 days ago
I agree. The annual fraud assessment by managers is also crucial in maintaining a strong control environment.
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Lenna
26 days ago
I think B is a good choice. The automated authority approval matrix and the whistleblower hotline are both important for fraud prevention.
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Goldie
1 months ago
I agree with Twanna, the control environment component for preventing fraud includes activities like automated approval matrix and comprehensive fraud assessment.
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Twanna
1 months ago
I think the answer is B) 1 and 3 because both activities are related to controlling fraud.
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Theron
2 months ago
The control environment is all about the organization's culture and the tone at the top, so I think option D is the best choice here. Having a whistleblower hotline and communicating the code of expected behavior are both crucial for fostering an ethical environment.
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Rickie
30 days ago
I think option D is the best choice as well. Those activities really help set the tone for ethical behavior within the organization.
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Josephine
1 months ago
I agree, having a whistleblower hotline and communicating the code of expected behavior are key components of the control environment.
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Chara
2 months ago
I disagree, I believe the answer is C) 2 and 3.
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Gilbert
3 months ago
I think the answer is A) 1 and 2.
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