Question 1
According to The Institute of Internal Auditors' International Standards for the Professional
Practice of Internal Auditing, due professional care implies infallibility.
A. True
B. False
CORRECT ANSWER
False
Question 2
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a reduced risk of
fraud
B. The existence of many specialized departments within a company generally increases the
overall risk of fraud within the organization
C. Misbehavior is more likely to be detected in a complex organizational structure than in a
simple organizational structure
D. All of the above
CORRECT ANSWER
The existence of many specialized departments within a company generally increases the
overall risk of fraud within the organization
1
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, Question 3
Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures
CORRECT ANSWER
Hiring policies and procedures
Question 4
According to AU Section 240, the auditor's assessment of the risk of material misstatement
due to fraud at the financial statement level should have an effect on which of the
following aspect(s) of an audit?
A. Consideration of accounting principles used
B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above
CORRECT ANSWER
All the above
Question 5
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According to The Institute of Internal Auditors' International Standards for the Professional
Practice of Internal Auditing, due professional care implies infallibility.
A. True
B. False
CORRECT ANSWER
False
Question 2
Which of the following is TRUE regarding organizational structure?
A. Companies with departments that are isolated geographically have a reduced risk of
fraud
B. The existence of many specialized departments within a company generally increases the
overall risk of fraud within the organization
C. Misbehavior is more likely to be detected in a complex organizational structure than in a
simple organizational structure
D. All of the above
CORRECT ANSWER
The existence of many specialized departments within a company generally increases the
overall risk of fraud within the organization
1
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, Question 3
Detective anti-fraud controls include all of the following EXCEPT:
A. Hotline
B. Proactive data analysis techniques
C. Physical inspections
D. Hiring policies and procedures
CORRECT ANSWER
Hiring policies and procedures
Question 4
According to AU Section 240, the auditor's assessment of the risk of material misstatement
due to fraud at the financial statement level should have an effect on which of the
following aspect(s) of an audit?
A. Consideration of accounting principles used
B. Assignment and supervision of personnel
C. Choice of auditing procedures
D. All of the above
CORRECT ANSWER
All the above
Question 5
2
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