Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

• A.True
• B.False

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Which of the following is NOT a purpose served by a professional organization s code of conduct?

• A.It provides clear answers to all ethical dilemmas the organization s members might face
• B.It serves as a reference and benchmark for ethical guidance
• C.It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
• D.It facilitates practical enforcement and profession-wide internal discipline

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Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs). While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements. Which of the following is Patrick's BEST response to these findings?

• A.Patrick should immediately report his findings to local law enforcement authorities.
• B.Patrick should confront management with his audit findings and try to get a confession.
• C.Patrick should report his findings to those charged with governance of the organization.
• D.Patrick should not disclose his findings to any other parties due to client confidentiality

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Which of the following theories suggests that, when considering the possibility of violating a law. people are likely to ask themselves. "What will my spouse think if they find out?"

• A.Operant theory
• B.Social control theory
• C.Cognitive theory
• D.Behavioral theory

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Which of the following is TRUE regarding an organization s ethics program?

• A.In designing the ethics program, management should consider whether the organization currently has any ethical leadership issues
• B.All of the above
• C.An effective written ethics policy alone is sufficient to communicate managements ethical philosophy and serve as a comprehensive ethics program
• D.To be most effective, access to the organization s ethics policy should be restricted to employees and other internal parties only

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