ACFE CFE-Fraud-Prevention-and-Deterrence Quiz 1 Topic 1 Questions 1-5

Question: 1

Glend

a. 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:

AInclude her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department

BAutomatically designate the accounts receivable department as a high-risk area

CConfront Bridgette about the disagreements and discuss how they increase the departments risk of fraud

DHave someone else perform the fraud risk assessment work related to the accounts receivable departments activities

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Question: 2

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?

AA The audit team should discuss how management could conceal fraud

BB. The audit team should consider factors that provide the opportunity for fraud.

CThe audit team should focus solely on how the company's assets could be misappropriated

DThe audit team should consider whether the organizational culture might enable the rationalization of fraud

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Question: 3

Which of the following is TRUE regarding an organization s ethics program?

ATo be most effective, access to the organization s ethics policy should be restricted to employees and other internal parties only

BIn designing the ethics program, management should consider whether the organization currently has any ethical leadership issues

CAn effective written ethics policy alone is sufficient to communicate managements ethical philosophy and serve as a comprehensive ethics program

DAll of the above

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Question: 4

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?

ASurveys

BAnonymous feedback mechanisms

CInterviews

DFocus groups

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Question: 5

Which of the following is TRUE regarding the reporting of the fraud risk assessment results7

AA fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

BThe fraud risk assessment report should be delivered in a style most suited to the language of the business

CThe fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

DAll of the above

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ACFE CFE-Fraud-Prevention-and-Deterrence Quiz:1 Topic:1 Questions:1-5