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NEW QUESTION 50
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 51
Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:

A. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable departmentB. Automatically designate the accounts receivable department as a high-risk areaC. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraudD. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities

Answer: C

 

NEW QUESTION 52
Benjamin, a Certified Fraud Examiner (CFE). was contacted regarding an engagement to investigate a complex money laundering case spanning numerous international jurisdictions and involving multiple cutting-edge technologies. Benjamin had previously attended a seminar on investigating money laundering schemes, but he had no other training or experience in such cases. However, he accepted the engagement and chose to conduct the work himself. Benjamin's conduct would likely be a violation of the ACFE Code of Professional Ethics.

A. FalseB. True

Answer: B

 

NEW QUESTION 53
During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme. However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

A. The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.B. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagementC. The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.D. The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

Answer: A

 

NEW QUESTION 54
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 55
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