IIA-IAP Exam - Topic 2 Question 19 Discussion

Actual exam question for IIA's IIA-IAP exam

Question #: 19
Topic #: 2

An internal auditor is conducting a human resources audit engagement. Which of the following observations would increase the probability of fraud?

AVague job descriptions.

BLack of background checks.

CPoor interview skills.

Show Suggested Answer

Suggested Answer: B

Comprehensive and Detailed Step-by-Step Explanation:

Fraud Risk Factors:

Lack of proper vetting processes, such as background checks, significantly increases the likelihood of hiring individuals who may pose a fraud risk.

Reasoning:

Option B is correct because failing to conduct background checks creates opportunities for hiring individuals with a history of unethical behavior, increasing fraud risk.

Option A (vague job descriptions) may lead to inefficiencies or unclear expectations but does not directly relate to fraud risk.

Option C (poor interview skills) might affect hiring quality but does not increase fraud probability.

Best Practice:

Conducting thorough background checks is a critical control to reduce fraud risk in human resources processes.

by Brittney at Nov 25, 2025, 12:24 AM

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Vincenza

44 minutes ago

A vague job description can also create confusion.

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Angella

5 days ago

Agreed, no background checks can lead to serious issues.

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Joanna

10 days ago

I think B is the biggest red flag.

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Kiera

29 days ago

Background checks are a must, no doubt about it!

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Anissa

1 month ago

Wait, poor interview skills can increase fraud? That’s surprising!

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Tyisha

1 month ago

Definitely going with B - no background checks is just asking for trouble!

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Celestina

1 month ago

Haha, the real fraud is whoever wrote these options - they're all pretty sketchy!

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Olive

2 months ago

C) Poor interview skills could lead to hiring the wrong people, increasing fraud risk.

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Carman

2 months ago

Vague job descriptions can also be a concern, as they may allow for abuse of authority.

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Malcolm

2 months ago

B) Lack of background checks is a major red flag for potential fraud.

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Belen

2 months ago

I feel like all three could contribute to fraud, but I’d lean towards lack of background checks as the most critical issue based on what we studied.

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Dusti

2 months ago

Poor interview skills could definitely lead to hiring the wrong people, but I’m not convinced it directly increases fraud risk like the other options.

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Arminda

3 months ago

I think lack of background checks is a big red flag. We practiced a similar question where that was highlighted as a major risk factor.

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Alesia

3 months ago

This is a good question. I think I'd focus on the background checks and job descriptions first, see if I can find any patterns or common issues across those areas.

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Benedict

3 months ago

I feel like the lack of background checks is the most obvious one here. That's a pretty basic HR control that, if missing, could really open the door for fraud.

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Hassie

3 months ago

Poor interview skills? That's an interesting one. I wonder how that would tie into fraud risk. Might be worth exploring further.

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Jamal

3 months ago

Totally agree, lack of background checks is a huge red flag!

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Lai

3 months ago

I remember discussing how vague job descriptions can lead to confusion and potential fraud, but I'm not entirely sure if that's the strongest indicator.

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