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NEW QUESTION 41
Which of the following is FALSE regarding a background check policy for employees'7

A. As part of the screening process, management should contact the references provided by the job candidateB. When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.C. Where permitted by law. management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hireD. At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

Answer: B

 

NEW QUESTION 42
Which of the following is NOT a responsibility of the organization s board of directors?

A. Managing the performance of employees charged with carrying out business activitiesB. Assessing the strategy and underlying purpose of management's decisions and actionsC. Acting as guardians of the organization s resources and assetsD. Serving as the middlemen between shareholders and management

Answer: D

 

NEW QUESTION 43
Having specialized departments within a company often increases the overall risk ot traud by the organization.

A. FalseB. True

Answer: B

 

NEW QUESTION 44
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

A. Professional skepticism involves maintaining a mindset that no fraud has occurredB. Professional skepticism means beginning all assignments with the belief that something is amiss.C. Fraud examiners should not relax their skeptical attitudes under any circumstances.D. Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.

Answer: C

 

NEW QUESTION 45
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 increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.B. It should be used to replace the auditor's own identification and assessment of fraud risks.C. It should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areasD. It should be used to design audit tests to evaluate whether the controls are operating effectively

Answer: B

 

NEW QUESTION 46
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