Which of the following statements regarding white-collar defendants is TRUE?
A. The lower the offenders' social status, the more likely they are to be imprisoned
B. They are more likely to be fined than to face prison terms as punishment
C. They are less likely to insist on a trial than other offenders
D. All of the above
Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?
A. A request that governments have in place an appropriate framework to support good corporate governance practices
B. Recognition of the importance of the role of stakeholders in corporate governance
C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders
D. Guidance regarding appropriate board structures, responsibilities, and procedures
Which of the following is FALSE regarding the fraud risk assessment team?
A. The team members should have experience in gathering and eliciting information
B. The team size should be limited to a maximum of three individuals.
C. The team members might include both internal and external sources D. The team should consist of individuals with diverse knowledge, skills, and perspectives.
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
Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What would my family and friends think if they find out?
A. Cognitive theory
B. Social control theory
C. Behavioral theory
D. Routine activities theory
White, 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. True
B. False
Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?
A. Event avoidance
B. Compliance
C. Risk tolerance
D. Review and revision
The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.
A. True
B. False
According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?
A. The materiality of the organization s financial statements
B. The organization s fraud risk management initiatives
C. The management team's assessment of the internal controls over financial reporting
D. The organization s risk exposures relating to the sale of assets
Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:
A. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department
B. Automatically designate the accounts receivable department as a high-risk area
C. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud
D. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities
In developing a corporate governance framework for an organization, directors and management must consider which of the following?
A. The organization s cultural environment
B. The organization s legal and regulatory environment
C. The organization s ethical environment
D. All of the above
Which of the following is FALSE regarding the discussion about the financial statements susceptibility to fraud that auditors are required to have under International Standard on Auditing (ISA) 240?
A. A The audit team should discuss how management could conceal fraud
B. B. The audit team should consider factors that provide the opportunity for fraud.
C. The audit team should focus solely on how the company's assets could be misappropriated
D. The audit team should consider whether the organizational culture might enable the rationalization of fraud
Which of the following is NOT a responsibility of the organization s board of directors?
A. Acting as guardians of the organization s resources and assets
B. Managing the performance of employees charged with carrying out business activities
C. Assessing the strategy and underlying purpose of management's decisions and actions
D. Serving as the middlemen between shareholders and management
Which of the following is among the audit committee s primary responsibilities related to fraud risk management?
A. Understanding how internal and external audit strategies address fraud risk
B. Designing the fraud risk management program
C. Punishing fraud perpetrators discovered through fraud risk management activities
D. Implementing the fraud risk management program
Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?
A. Establishing well-defined job descriptions to facilitate performance evaluations
B. Evaluating employee performance based solely on productivity and profit
C. Tying employee compensation to reasonable organizational performance goals
D. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks