Question 1

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 2

How does writing off obsolete inventories affect a company's financial statements?

Options :

A : Stock increases

B : Stock decreases

C : Profit increases

D : Profit decreases

E : 1 and 3 only

F : 1 and 4 only

G : 2 and 3 only

H : 2 and 4 only

Answer: G

Question 3

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 4

Which of the following is a best practice when assembling a fraud risk assessment team?

Options :

A : Team members should all have similar skills and perspectives.

B : The size of the team should be limited to four individuals.

C : The team should include only external sources.

D : Team members should have experience in eliciting information.

Answer: D

Question 5

Which of the following is TRUE regarding the communication of the fraud risk assessment process?

Options :

A :

The more personalized the communication, the more effective it will be in encouraging employees to participate

B :

The communication should be made in a format mat is most appropriate for the culture of the organization

C : The communication should be visibly disseminated throughout the business

D : All of the above

Answer: D