Which of the following statements is FALSE regarding an organization's fraud risk management program?

• A.The program must include mechanisms to address breaches in compliance.
• B.The punishment for intentional noncompliance should be carried out in a consistent and firm manner.
• C.Formal sanctions for intentional noncompliance should be determined and enacted privately
• D.A specific individual or team should be designated as responsible for monitoring compliance with the program

Comment: *

Name: *

Email: *

Verification: *

Which of the following is TRUE regarding International Standard on Auditing (ISA) 240?

• A.ISA 240 requires auditors to effectively raise awareness about the risk of fraud within the audited organization.
• B.ISA 240 establishes standards regarding the auditor's responsibility to consider fraud in an audit of financial statements.
• C.ISA 240 establishes auditors as being primarily responsible for the prevention and detection of fraud within an organization.
• D.ISA 240 creates requirements for management regarding the establishment of a holistic fraud risk management program.

Comment: *

Name: *

Email: *

Verification: *

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

• A.Susannah should not disclose her findings to any other parties due to client confidentiality.
• B.Susannah should Immediately report her findings to the secunties regulators
• C.Susannah should confront management with her audit findings and try to get a confession.
• D.Susannah should report her findings to the audit committee of the board of directors.

Comment: *

Name: *

Email: *

Verification: *

According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

• A.High personal debt; lack of separation of duties
• B.Revenge: too much trust in key employees
• C.Living beyond their means, too much trust in key employees
• D.Desire for recognition, lack of separation of duties

Comment: *

Name: *

Email: *

Verification: *

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

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

Comment: *

Name: *

Email: *

Verification: *