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NEW QUESTION 52
Which of the following is TRUE regarding proactive fraud auditing procedures?
- A. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.
- B. Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.
- C. Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud
- D. Implementing proactive fraud audit procedures demonstrates the organization's intention to aggressively look for possible fraudulent conduct.
Answer: C
NEW QUESTION 53
According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?
- A. The management team's assessment of the internal controls over financial reporting
- B. The organization s fraud risk management initiatives
- C. The organization s risk exposures relating to the sale of assets
- D. The materiality of the organization s financial statements
Answer: B
NEW QUESTION 54
The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?
- A. Rational choice theory
- B. Social control theory
- C. Conditioning theory
- D. Routine activities theory
Answer: B
NEW QUESTION 55
Which of the following is a best practice to ensure a successful fraud reporting program?
- A. The company should communicate that fraud, waste, and abuse are more likely to occur in large organizations than small ones.
- B. Employees are held accountable for reporting tips that are not able to be substantiated
- C. Employees should be informed that, to the extent possible, their names will not be disclosed.
- D. The company should require employees with information about potential fraud to report it directly and only to their immediate supervisor.
Answer: C
NEW QUESTION 56
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