Exam IIA-IAP Topic 5 Question 1 Discussion

Actual exam question for IIA's IIA-IAP exam
Question #: 1
Topic #: 5
An internal auditor is conducting a human resources audit engagement. Which of the following observations would increase the probability of fraud?

Suggested Answer: B Vote an answer

Comprehensive and Detailed Step-by-Step Explanation:
* Fraud Risk Factors:
* Lack of proper vetting processes, such as background checks, significantly increases the likelihood of hiring individuals who may pose a fraud risk.
* Reasoning:
* Option B is correct because failing to conduct background checks creates opportunities for hiring individuals with a history of unethical behavior, increasing fraud risk.
* Option A (vague job descriptions) may lead to inefficiencies or unclear expectations but does not directly relate to fraud risk.
* Option C (poor interview skills) might affect hiring quality but does not increase fraud probability.
* Best Practice:
* Conducting thorough background checks is a critical control to reduce fraud risk in human resources processes.

by Stanley at May 17, 2025, 05:53 AM

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