Question 1

Willow, Inc. has a complex organizational structure with many specialized departments. The structure of Willow, Inc. increases the likelihood that fraud will go undetected within the organization.

Options :

A : True

B : False

Answer: B

Question 2

Professional auditing standards require that auditors incorporate an "element of unpredictability" in the selection of auditing procedures to be performed.

Options :

A : True

B : False

Answer: A

Question 3

Trevino Ltd is a facility management company which is managing 12 high-rise buildings accross the city. Maintenance of those building accounts for a significant part of Trevino's budget. The company often outsource this service to third party providers. Which of the following can assist Trevino in managing the performance of these suppliers?

Options :

A : Stock turn rate

B : Just In Time (JIT)

C : Total cost of ownership

D : Service Level Agreement (SLA)

Answer: D

Question 4

According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

Options :

A : Identity theft is both the most common and costliest category of occupational fraud.

B : Asset misappropriation schemes are the most common category of occupational fraud.

C : Corruption schemes are the costliest category of occupational fraud.

D : Financial statement fraud schemes are the most common category of occupational fraud.

Answer: B

Question 5

Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

Options :

A :

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

B :

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

C :

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

D : All of the above

Answer: A