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NEW QUESTION 26
During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.
The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization.
Division management views the employee's actions as extra incentive to retain the employee.
A decision to include the employee's action in the engagement final communication would be:
1. A violation of the IIA Code of Ethics.
2. A violation of the reporting requirements in the Standards.
3. Justified and necessary, according to the IIA Code of Ethics and Standards.

  • A. 1 and 2 only
  • B. 2 only
  • C. 3 only
  • D. 1 only

Answer: C

NEW QUESTION 27
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.

  • A. 1,2, and 4.
  • B. 2. 3, and 4.
  • C. 1.2, and 3.
  • D. 1.3, and 4.

Answer: A

NEW QUESTION 28
What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?

  • A. Avoiding the risk of having a direct network connection to un-trusted networks.
  • B. Sharing the risk that either firewall could be compromised by hackers.
  • C. Diversifying the risk that network access will not be available to legitimate, authorized users.
  • D. Accepting the risk that there may be attempts at unauthorized access to the network.

Answer: C

NEW QUESTION 29
Which of the following types of fraud includes embezzlement?

  • A. Fraudulent statements.
  • B. Bribery.
  • C. Misappropriation of assets.
  • D. Corruption.

Answer: C

NEW QUESTION 30
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