Free ACFE CFE-Fraud-Prevention-and-Deterrence Exam Dumps and CFE-Fraud-Prevention-and-Deterrence Exam Questions

Question No: 21

MultipleChoice

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.

Options

ATrue

BFalse

Question No: 22

MultipleChoice

The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing states that

Options

AThe internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud

BThe internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.

CThe internal auditor must apply the skill and care of an unbiased, infallible audit professional.

DThe internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor

Question No: 23

MultipleChoice

Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud

Options

ATrue

BFalse

Question No: 24

MultipleChoice

According to modern criminological studies, which of the following is the determinant aspect of white-collar crime'?

Options

AOrganizational opportunity

BAbsence of risk factors

CPotential legal punishment

DSocial status

Question No: 25

MultipleChoice

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

Options

AMitigating the risk

BAssuming the risk

CAvoiding the risk

DTransferring the risk

Question No: 26

MultipleChoice

Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

Options

ATrue

BFalse

Question No: 27

MultipleChoice

According to International Auditing Standard (ISA) 240. the two types of intentional financial statement misstatements that are relevant to the auditor are

Options

AMisstatements resulting from fraudulent financial reporting and misstatements resulting from misappropriation of assets

BMisstatements resulting from revenue manipulation and misstatements resulting from expense manipulation

CMisstatements affecting the income statement and misstatements affecting the balance sheet

DImmaterial misstatements and material misstatements

Question No: 28

MultipleChoice

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:

Options

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

Question No: 29

MultipleChoice

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?

Options

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

Question No: 30

MultipleChoice

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

Options

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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