ACFE CFE-Fraud-Prevention-and-Deterrence Quiz 16 Topic 4 Questions 76-80

Question: 1

According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

AThe continued pressures of a culture that rewards affluence and success

BThe economy's increased reliance on credit

CThe increased constraints of the regulatory environment for businesses

DThe increased opportunity for wrongdoing as a result of advancing information technologies

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Question: 2

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

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

BThe Principles state that an entity's corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.

CThe Principles are intended to be applicable in developed economies but not in emerging markets.

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

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Question: 3

During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme. 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?

AThe auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

BThe auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

CThe auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.

DThe auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.

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Question: 4

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

AEvent avoidance

BRisk tolerance

CCompliance

DReview and revision

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Question: 5

Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.

ATrue

BFalse

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ACFE CFE-Fraud-Prevention-and-Deterrence Quiz:16 Topic:4 Questions:76-80