BEC 19

Question 1

according to Association of Certified Fraud Examiners what is the audit committees role

Answer 1

1 - consider the risk of management override of controls

2) Monitor fraus risks throughout the organizarion
3) meet privately with individuals
4) consider reputation risk when reviewing work of management, internal auditors, and external auditors
5) remain congestion of the external auditors responsibilities pertaining to fraud
6) seek counsel when responding to allegations of fraud

Question 2

what term describes both a general decline in the price of goods and services and in the level of interest rates

Answer 2

Deflation

• decline in prices AND in the level of interest rates

Question 3

What describes a general decline in a prices and in the availability of money and an increase in interest rates

Answer 3

Recession:

decline in prices

decrease in availability of money

Increase in interets rates