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NEW QUESTION 44
The internal auditor s fraud-related responsibilities include which of the following?
- A. Attesting that the organization s financial statements are free of material misstatements caused by fraud
- B. Overseeing managements actions to manage fraud risks
- C. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program
- D. Reporting to regulators regarding the entity's vulnerability to fraud
Answer: D
NEW QUESTION 45
Which of the following is FALSE regarding a fraud risk assessment?
- A. The assessment team should consider how employees behave as part of its assessment
- B. The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.
- C. The assessment should be used to improve employee fraud awareness
- D. The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.
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. Have someone else perform the fraud risk assessment work related to the purchasing function
- B. Automatically designate the purchasing function as a high-risk area.
- C. Confront Brandon about the disagreements and discuss how they increase the organization's risk of fraud-
- D. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
Answer: D
NEW QUESTION 47
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but it allows exceptions for unknowing violations of the law
- A. False
- B. True
Answer: A
NEW QUESTION 48
Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?
- A. Patrick should report his findings to those charged with governance of the organization.
- B. Patrick should confront management with his audit findings and try to get a confession.
- C. Patrick should not disclose his findings to any other parties due to client confidentiality
- D. Patrick should immediately report his findings to local law enforcement authorities.
Answer: A
NEW QUESTION 49
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