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Question 264

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

The review should focus on the efficiency of the controls in place to prevent fraud.

The scope of the review does not need to include all operating areas of the organization.

The cost of the control should be compared to the benefit of mitigating the related risk.

The review should assess whether the internal controls can be circumvented.

Correct Answer: A

IIA guidance emphasizes a comprehensive approach when reviewing controls to prevent fraud. While efficiency is one aspect to consider, the review should not solely focus on it. Instead, it should evaluate the design and effectiveness of controls, their ability to mitigate fraud risks, and whether they can be circumvented. Hence, focusing solely on efficiency without considering these other critical aspects would be inadequate.

Discussion

John1237Option: A

Not just the controls in place (their completeness).

John1237Option: A

The review should assess (not only focus on) the efficiency of the controls in place to prevent fraud. If necessary, detail testing should be performed.