IIA Updated IIA-CIA-Part1 Exam Questions and Answers by magnus

Having more bank accounts than necessary can be a red flag for fraud, especially in a subsidiary compared to its peers. This scenario (option B) might indicate complexity that is unnecessary and could be used to conceal improper transactions or facilitate unauthorized movements of funds. Excessive bank accounts can complicate tracking and reconciling of funds, which can be exploited for fraudulent purposes. This potential red flag should prompt further investigation by the internal auditor.References:

• IIA guidance on fraud risk indicators

According to IIA standards, the nature of consulting services to be performed by internal auditors must be defined in the internal audit charter. This helps ensure clarity and alignment between the internal audit activity's objectives and the organization's expectations, while also providing a framework that guides the consulting services provided by internal auditors.References: IIA Standard 1000 - Purpose, Authority, and Responsibility, which includes guidelines on the content of the internal audit charter, including the scope of consulting services.

The corporate social responsibility (CSR) strategy of accommodation is associated with responding to outside pressures by assuming additional responsibility. This strategy typically involves making adjustments and accepting responsibilities to address the concerns of external stakeholders, thereby fostering a positive relationship and enhancing the company's social license to operate.References: CSR strategies and responses in corporate governance literature

Installing security cameras to identify unauthorized physical access to a warehouse is an example of detective controls. Detective controls are designed to identify and alert the occurrence of an unwanted or risky event, such as unauthorized access, after the fact, allowing for timely corrective action to be taken.References: Basic control types and functions in security management