Online Access Free CFE-Fraud-Prevention-and-Deterrence Practice Test

A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor ' s consideration of fraud during this engagement?

• A.The objectives of the audit are likely narrower than those of a private-sector financial statement audit.
• B.In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
• C.The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
• D.The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.

Which of the following Is NOT a way that an organization ' s fraud risk assessment should be Incorporated Into the audit process?

• A.it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
• B.It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.
• C.It should be used to design audit tests to evaluate whether the controls are operating effectively.
• D.It should be used to replace the auditor ' s own identification and assessment of fraud risks.

Which of the following is included in the G20/OECD Principles of Corporate Governance?

• A.An emphasis on the importance of timely, accurate and transparent disclosure mechanisms.
• B.A requirement for a corporate governance framework that protects the exercise of management's rights.
• C.Support for the equal treatment of all members of an organization's governing body.
• D.A request that governments implement effective internal controls to support good corporate governance practices.

Which of the following factors increases an organization ' s inherent inclination toward committing crime according to Diane Vaughan ' s research?

• A.Management encourages employee loyalty through social functions.
• B.Management seeks diversity in attitudes and perspectives when hiring employees.
• C.Management separates employee performance goals from company performance goals.
• D.Management rewards employees who challenge how the company functions.

Mario is charged with implementing a fraud reporting program on behalf of his organization. Which of the following is a best practice that Mario should follow to ensure that the program is successful?

• A.Inform employees that they are required to report any information about suspected fraud only to their direct supervisor.
• B.Inform employees that they will be held accountable for reporting any tips that cannot be verified.
• C.Inform employees that they can make their report anonymously (where permitted by law).
• D.Inform employees that the names of all individuals who report misconduct will be shared with the organization ' s management and law enforcement.