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NEW QUESTION 23
As part of her audit of ABC Corp . Rachel, a CPA. is identifying the risks of material misstatement due to fraud As part of this task, she should evaluate any unexpected relationships that she identified in performing analytical procedures.

• A. True
• B. False

Answer: A

NEW QUESTION 24
Which of the following statements regarding document retention policies (DRPs) is TRUE?

• A. Document retention policies do not need to include protocols for preserving electronic documents as most IT systems automatically preserve copies of such data
• B. All of the above
• C. When establishing a document retention policy, management should consider any industry-specific rules for documenting and regaining records
• D. An effective document retention policy permits the organization to continue the destruction of documents when faced with potential litigation

Answer: B

NEW QUESTION 25
According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?

• A. Tips
• B. Internal audit
• C. Confession
• D. External audit

Answer: A

NEW QUESTION 26
Jane, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination at XYZ Company. Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring. Consequently.
XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request

• A. False
• B. True

Answer: A

NEW QUESTION 27
Which of the following statements is FALSE regarding an organization's fraud risk management program1?

• A. A Formal sanctions for intentional noncompliance should be well-publicized throughout the company
• B. The program must include mechanisms to monitor and identify breaches in compliance
• C. There should be measures in place to address failures in the design or operation of anti-fraud controls, as well as fraud occurrervces
• D. The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of the company

Answer: A

NEW QUESTION 28
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