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NEW QUESTION 30
XYZ, Inc. Is a specialty retailer of high-end ergonomic office furniture. The company receives a very large order from ABC Company, a new customer in a different country that wants to pay on credit. Which of the following is MOST ACCURATE regarding the due diligence procedures XYZ should perform on ABC before proceeding with this transaction?

A. XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.B. XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transactionC. XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.D. XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination

Answer: D

 

NEW QUESTION 31
Which of the following statements regarding best practices that organizations can take to protect and support whistleblowers is MOST ACCURATE?

A. Organizations should establish formal consequences that are to be imposed upon employees at the company who retaliate against a whistleblower.B. Organizations should implement a clear whistleblower policy that lists out every type of misconduct that has ever been reported at the company.C. Organizations should publicize their whistleblower procedures internally but should avoid communicating any procedural information to parties outside of the organization.D. Organizations should emphasize that rules regarding whistleblower protections are only intended for lower level employees who might be more vulnerable to retaliation.

Answer: A

 

NEW QUESTION 32
Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?

A. FairnessB. ResponsibilityC. AccountabilityD. Transparency

Answer: D

 

NEW QUESTION 33
The internal auditor's fraud-related responsibilities include which of the following?

A. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management programB. Attesting that the organization's financial statements are free of material misstatements caused by fraudC. Reporting to regulators regarding the entity's vulnerability to fraudD. Overseeing management's actions to manage fraud risks

Answer: A

 

NEW QUESTION 34
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