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NEW QUESTION 52
During an external audit of an organization's financial statements. Elena, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Elena do with regard to these findings?

A. Elena should report the findings in writing to the appropriate law enforcement agencies.B. Elena should provide a written communication about the findings to senior management.C. Elena should suspend the audit and begin a new audit focused on the internal controlsD. Elena should work independently to correct the underlying internal control deficiency.

Answer: B

 

NEW QUESTION 53
Green, a Certified Fraud Examiner (CFE). had an ethical dilemma regarding her business contract with her professional partners. Which of the following sources of guidance would be considered the lowest level of reference to help Green in determining the most ethical course of action?

A. The ACFE Code of Professional EthicsB. Philosophical principles related to ethicsC. Contract lawD. Guidance from her family and friends

Answer: C

 

NEW QUESTION 54
The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control-Integrated Framework (the Framework)?

A. MonitoringB. Control environmentC. Risk assessmentD. Information and communication

Answer: C

 

NEW QUESTION 55
Employees should be kept unaware that management is watching for lifestyle and behavior changes In staff members that might indicate fraud.

A. TrueB. False

Answer: A

 

NEW QUESTION 56
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