Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 75

According to IIA guidance, which of the following statements is false regarding a review of the controls in place to prevent fraud?

Answer options

• A. The review should focus on the efficiency of the controls in place to prevent fraud.
• B. The scope of the review does not need to include all operating areas of the organization.
• C. The cost of the control should be compared to the benefit of mitigating the related risk.
• D. The review should assess whether the internal controls can be circumvented.

Correct answer: A

Explanation

Option A is correct because the review should prioritize the effectiveness of controls rather than just their efficiency. Options B, C, and D are accurate statements about the review process and its requirements regarding scope, cost-benefit analysis, and assessment of control circumvention.