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NEW QUESTION 34
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A. Fraud examiners should not relax their skeptical attitudes even if there are no signs of fraudulent activity.B. Professional skepticism means beginning all assignments with the belief that something is amissC. Fraud examiners should form the engagement hypothesis without regard to the available preliminary informationD. Professional skepticism involves maintaining a mindset that no fraud has occurred

Answer: B

 

NEW QUESTION 35
The objectives of a fraud risk management program include

A. Limiting the damage caused by fraud occurrencesB. Punishing fraud perpetratorsC. All of the aboveD. Proactively identifying fraud risks

Answer: C

 

NEW QUESTION 36
Gregory, an internal auditor, and Brandon, the company's purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company's fraud risk assessment. During the fraud risk assessment. Gregory should:

A. Automatically designate the purchasing function as a high-risk area.B. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.C. Have someone else perform the fraud risk assessment work related to the purchasing functionD. Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-

Answer: B

 

NEW QUESTION 37
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines_____________as
"a process, effected by an entity s board of directors management.
and other personnel designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

A. Internal controlB. Risk assessmentC. Corporate complianceD. Fraud risk management

Answer: A

 

NEW QUESTION 38
Maria conducted a fraud examination that led to a valid confession of guilt from Rit a. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

A. TrueB. False

Answer: A

 

NEW QUESTION 39
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