ACFE CFE-Fraud-Prevention-and-Deterrence Quiz 15 Topic 4 Questions 71-75

Question: 1

Which of the following is FALSE regarding corporate governance'

AEffective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy

BEffective corporate governance practices are considered to be the foundation of fraud risk management.

CCorporate governances primary purpose is to ensure the accuracy of the organizations financial reports

DAn entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

Show Answer

Question: 2

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines_____________as "a process, effected by an entity s board of directors management.

and other personnel designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance."

AFraud risk management

BCorporate compliance

CInternal control

DRisk assessment

Show Answer

Question: 3

Which of the following is NOT a way that an organization's fraud risk assessment should be incorporated into the audit process''

AIt should be used to replace the auditor's own identification and assessment of fraud risks.

BIt should be used to assess whether there is a moderate-to-high risk of management override of internal controls within the moderate-to-high fraud risk areas

CIt should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.

DIt should be used to design audit tests to evaluate whether the controls are operating effectively

Show Answer

Question: 4

According to G20/OECD Principles of Corporate Governance (the Principles):

AGovernments should have in place a corporate governance framework that promotes transparent and fair markets

BCompanies should disclose all financial information to investors, regardless of the cost burden of the disclosure

CA corporate governance framework should focus on the rights of shareholders but does not need to include the rights of other organizational stakeholders

DAll of the above

Show Answer

Question: 5

The fact that most groups within groups a society have the same ideas of right and wrong greatly assists in the ability to determine the correct ethical decision in a given situation.

ATrue

BFalse

Show Answer

ACFE CFE-Fraud-Prevention-and-Deterrence Quiz:15 Topic:4 Questions:71-75