Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 33

Which of the following is a detective control for managing the risk of fraud?

Answer options

• A. Awareness of prior incidents of fraud.
• B. Contractor non-disclosure agreements.
• C. Verification of currency exchange rates.
• D. Receipts for employee expenses.

Correct answer: C

Explanation

The correct answer, C, involves verifying currency exchange rates to detect potential fraud in financial transactions. Options A and B are more preventive in nature, while D relates to expense tracking rather than directly detecting fraud.