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NEW QUESTION 34
Effective risk management involves balancing which of the following?

A. The organization s regulatory requirements and its available resourcesB. The organization s internal controls and its financial goalsC. The organization s risk appetite and its ability to meet its objectivesD. The organization s financial reporting model and its risk tolerance

Answer: A

 

NEW QUESTION 35
The objective of anti-fraud controls is to:

A. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.B. Completely eliminate residual fraud riskC. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud riskD. Completely eliminate inherent fraud risk.

Answer: C

 

NEW QUESTION 36
In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

A. FalseB. True

Answer: B

 

NEW QUESTION 37
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 do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.C. The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.D. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

Answer: A

 

NEW QUESTION 38
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