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1. Adan, an internal auditor who works at BKY Co., is reviewing the auditing procedures for his company. He is specifically considering the ways BKY can proactively audit for fraud. Which of the following is TRUE regarding the use of proactive fraud auditing procedures at BKY?
A) Fraud audit procedures should be designed to avoid an element of surprise.
B) Analytical review of BKY's financial statements is the best way to uncover small frauds that might be missed by other detection methods.
C) Auditors should avoid asking questions such as, "Has anyone ever asked you to do something unethical?" as part of their audits, as this can limit employees' willingness to communicate.
D) Fraud assessment questioning techniques are most effectively used as part of the normal audit process.
2. Employee support programs are a fraud prevention mechanism that addresses which leg of the Fraud Triangle
A) Rationalization
B) Lack of integrity
C) Opportunity
D) Pressure
3. International Standard on Auditing (ISA) 240 establishes auditors as being primarily responsible for the establishment of anti-fraud internal controls within an organization.
A) False
B) True
4. Which principle of corporate governance pertains to the disclosure of all material matters that the shareholders need to make timely and informed decisions regarding their investment in the company?
A) Transparency
B) Fairness
C) Accountability
D) Responsibility
5. Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?
A) A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified
B) The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding
C) All of the above
D) The fraud risk assessment report should be delivered in a style most suited to the language of the business
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: D |
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Geoffrey
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