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NEW QUESTION 43
While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White’s opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management.
- A. False
- B. True
Answer: B
NEW QUESTION 44
According to the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-integrated Framework (the Framework), there are five interrelated components of a company’s internal control. Which of the following is NOT among these five components?
- A. Control environment
- B. Monitoring
- C. Independent oversight
- D. Information and communication
Answer: C
NEW QUESTION 45
During a fraud risk assessment, (he assessment (earn is seeking information on the ethical tone set by upper and middle managers The team members determine that, for this task, they would like to get candid one-on-one feedback from employees away from their peers. Which of the following techniques would be most helpful for them to use in gathering this information?
- A. Interviews
- B. Surveys
- C. Focus groups
- D. Anonymous feedback mechanisms
Answer: D
NEW QUESTION 46
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. Confront Brandon about the disagreements and discuss how they increase the organization’s risk of fraud-
- B. Have someone else perform the fraud risk assessment work related to the purchasing function
- C. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
- D. Automatically designate the purchasing function as a high-risk area.
Answer: C
NEW QUESTION 47
Which of the following is FALSE regarding proactive fraud auditing procedures?
- A. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods
- B. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
- C. Fraud audit procedures should be designed to incorporate an element of surprise.
- D. Implementing proactive fraud audit procedures demonstrates management’s intention to aggressively seek out possible fraudulent conduct
Answer: A
NEW QUESTION 48
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