Review Questions Part I

Question 1

To protect against 3rd party fraud, organizations perform same level of CCD

Answer 1

False

Question 2

Fraud Triangle

Answer 2

1. Non-shareable financial need
2. Rationalization
3. Perceived opportunity

Question 3

Fraud risk conducted by consultant or external party

Answer 3

False

Question 4

G20/OECD Principles of Corporate Governance required to be implemented in all jurisdictions

Answer 4

No

Question 5

COSO Enterprise Risk Management

Answer 5

1. Governance/culture
2. Strategy -objective setting
3. Performance
4. Review and revision
5. Information, communication and reporting

Question 6

White collar defendants less like to insist on trial

Answer 6

False

Question 7

NOT eight principles of ISO 31000:20018

Answer 7

Program based on effective leadership and commitment

Question 8

What should be covered on anti-fraud training

Answer 8

Examples of past transgressions and how they were handled

Question 9

MOST appropriate CCD for potential customer with little opportunity to commit fraud/minimal risk of engaging in illegal activity.

Answer 9

Identify Customer

Question 10

Purpose of ISA 240

Answer 10

1. audit standards fraud financial statements
2. auditor requirements prevention/detection
3. auditor requirements design implement internal controls

Question 11

Surveys/anonymous feedback mechanisms provide effective way to conduct candid one-on-one conversations

Answer 11

FALSE

Question 12

NOT a component of COSO Enterprise Risk Management

Answer 12

Risk Tolerance

Question 13

NOT a consideration of government auditors vs private auditors

Answer 13

Narrower overall audit objectives

Question 14

Organizations are inherently

Answer 14

Criminogenic

Question 15

Audit Committee responsibilities for fraud risk management

Answer 15

Regular reports on status of alleged fraud

Question 16

Primary purpose of ISA 240

Answer 16

Establish standards and provide guidance to auditors responsibility to consider fraud