Which of the following is FALSE regarding G20/OECD Principles of Corporate Governance (the Principles)?

A. The Principles state that an entity's corporate governance framework should ensure the equitable treatment of all shareholders

B. The Principles state that an entity's corporate governance framework should encourage active cooperation between corporationfiand stakeholders in creating wealth.

C. The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them

D. The Principles are intended to be applicable in both developed economies and emerging markets

Which of the following statements is FALSE regarding an organization's fraud risk management program1?

A. A Formal sanctions for intentional noncompliance should be well-publicized throughout the company

B. There should be measures in place to address failures in the design or operation of anti- fraud controls, as well as fraud occurrervces

C. The program must include mechanisms to monitor and identify breaches in compliance

D. The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of the company

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

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

A. The possibility of management override of controls

B. Risks to the organization's reputation

C. The organization's incentive programs

D. All of the above

Which of the following is one of the components of the Committee of Sponsoring Organizations of the Treactway Commission's (COSO) Enterprise Risk Management--Integrating with Strategy and Performance?

A. Event avoidance

B. Compliance

C. Risk tolerance

D. Review and revision

Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:

A. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department

B. Automatically designate the accounts receivable department as a high-risk area

C. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud

D. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities

According to the 2018 Report to the Nations.___________schemes are the most common form of occupational fraud, while_________schemes are the costliest form of occupational fraud

A. Financial statement fraud, corruption

B. Asset misappropriation; financial statement fraud

C. Asset misappropriation; corruption

D. Corruption; asset misappropriation

Which of the following is NOT a responsibility of the organization s board of directors?

A. Acting as guardians of the organization s resources and assets

B. Managing the performance of employees charged with carrying out business activities

C. Assessing the strategy and underlying purpose of management's decisions and actions

D. Serving as the middlemen between shareholders and management

The objective of anti-fraud controls is to:

A. Completely eliminate residual fraud risk

B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

C. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

D. Completely eliminate inherent fraud risk

Which of the following is FALSE regarding proactive fraud auditing procedures?

A. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively seek out possible fraudulent conduct

B. Fraud audit procedures should be designed to incorporate an element of surprise.

C. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods

D. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process