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NEW QUESTION 52
Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

A. It should be used to replace the auditor's own identification and assessment of fraud risks.B. It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.C. It should be used to design audit tests to evaluate whether the controls are operating effectively.D. it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

Answer: A

 

NEW QUESTION 53
According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?

A. The organization s risk exposures relating to the sale of assetsB. The organization s fraud risk management initiativesC. The management team's assessment of the internal controls over financial reportingD. The materiality of the organization s financial statements

Answer: B

 

NEW QUESTION 54
During the course of a fraud examination. Stefan, an employee of Acme Inc., approaches Marten, a Certified Fraud Examiner (CFE) and fellow employee of Acme, and tells him that he knows of a major fraud being committed by the chief financial officer (CFO). However. Stefan says he can only provide details if Marten promises him absolute confidentiality. How should Marten respond?

A. Agree that the information will be held in confidence, even though Marten knows it will not beB. Not agree to the request for confidentialityC. Tell Stefan that he will try to keep the information as confidential as possibleD. Take Stefan's request straight to Acme Inc.'s management

Answer: C

 

NEW QUESTION 55
The findings in the 2020 Report to the Nations include which of the following?

A. The median losses caused by executives are lower than those caused by staff-level employeesB. The majority of fraudsters have been previously punished by an employer for a fraud-related offenseC. Mote occupational frauds are committed by men than by womenD. The most commonly reported red flag displayed by fraud perpetrators prior to the detection of their crime is complaints about management.

Answer: C

 

NEW QUESTION 56
Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

A. A mandatory independent compensation committeeB. Adequate audit committee resources and authorityC. Shareholder oversight of internal controlsD. A written charter for management

Answer: B

 

NEW QUESTION 57
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