1. (TCO E) Why operations have become inefficient and are reflected in the _____ of the finding.

(Points : 3)

statement of condition cause effect criteria

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2. (TCO E) Criteria standards for the operational auditor include internal standards for the organization, such as _____. (Points : 3)

policy regulation contract All of the above

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3. (TCO E) The most important element of the operational review is to develop (Points : 3)

a rapport with management. management awareness of risk. specific findings for management. None of the above.

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4. (TCO E) A quality audit report exhibits all of the following qualities, except: (Points : 3)

usefulness timeliness clarity adherence to IIA standards

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5. (TCO E) The ABC's of effective reporting include all of the following except: (Points : 3)

accuracy brevity

clarity format

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6. (TCO F) Check tampering is unique from other fraudulent disbursement schemes because in a check tampering scheme: (Points : 3)

The perpetrator physically prepares the fraudulent check. The perpetrator must have access to a signature stamp in order to conceal the crime. The perpetrator submits a phony document in order to generate the fraudulent payment. The perpetrator must endorse the check in order to cash or deposit it

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7. (TCO F) Which of the following is not a type of payroll scheme? (Points : 3)

Ghost employee schemes Shell company billing Falsified hours and salary schemes Commission schemes

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8. (TCO F) In one of the case studies in the textbook (page 167), Katie Jordon was the All-American Girl

Next Door working her first job out of college. As an on-site manager for an apartment complex in Dallas, she did such a good job that when her employer purchased a huge apartment complex in Houston, they asked her to run it. All was good until a member of the maintenance crew resigned. She continued to keep him on the payroll and pocketed his wages. She later added a non-existent assistant when she saw how easy it was to add an employee without being questioned. However, her scheme eventually came to light, and her days of bonus pay were over. What was her motivation for stealing? (Points : 3) Her boyfriend, a professional motocross racer, was injured in a race. She was getting married and needed money for the wedding. She blew the engine in her car and didnt have the money to replace it. She wanted to pay off her college loan early so she could save for a house.

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9. (TCO F) Which of the following is not a type of corruption scheme? (Points : 3)

Bribery Conflict of interest

Illegal gratuities Concealed payments

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10. (TCO F) In one of the case studies in the textbook (page 237), the General Services Administration

(GSA), the federal governments bookkeeping agency, purchased more than $200 million worth of defective and useless furniture from a New Jersey furniture manufacturer. After reviewing the books of the furniture manufacturer, it was clear that the company was paying off GSA inspectors. The investigators eventually focused on one particular regional inspector because: (Points : 3) He vacationed in Europe with the vendor and charged the trip back to the government as a business related trip. He paid cash for a new home on the Jersey shore. He purchased eleven race horses. He had credit card charges of more than twice his annual salary during a six-month period.

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