During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization ' s reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

• A.The auditors should reconsider the reliability of the audit evidence they have previously obtained.
• B.The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
• C.The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold
• D.The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

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In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

• A.All of the above
• B.The organization's incentive programs
• C.Risks to the organization's reputation
• D.The possibility of management's override of controls

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Sofia, a Certified Fraud Examiner (CFE). look an introductory class in computer forensics When a client thought there might be evidence of a crime on his hard drive. Sofia decided to conduct a forensic examination of the hard drive even though she had no experience or advanced training in this area Sofia's conduct would likely be a violation of the ACFE Code of Professional Ethics

• A.True
• B.False

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According to ACFE research, which of the following is TRUE regarding the three major categories of occupational fraud?

• A.Identity theft is both the most common and costliest category of occupational fraud.
• B.Asset misappropriation schemes are the most common category of occupational fraud.
• C.Corruption schemes are the costliest category of occupational fraud.
• D.Financial statement fraud schemes are the most common category of occupational fraud.

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

• A.It replaces the need for individuals to consult their own conscience.
• B.It facilitates practical enforcement and profession-wide Internal discipline.
• C.It serves as a reference and benchmark for ethical guidance
• D.It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles

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