Section C Question Set: Fraud
Prevention correctly answered to pass
1
For analytical review procedures performed during a financial statement audit to be most
effective in uncovering fraud, the scheme must materially impact the financial statements.
a.
True.
b.
False. - correct answer ✔✔A
2
Surprise audits can be effective in both preventing and detecting fraudulent conduct.
a.
True.
b.
False. - correct answer ✔✔A
3
,Having an auditor ask employees questions such as "Has anyone ever asked you to do anything
that you felt was illegal or unethical?" can be an effective method of uncovering fraud within an
organization.
a.
True.
b.
False. - correct answer ✔✔A
4
Factors that affect employees' ethical decisions include:
a.
Industry and organizational ethical codes.
b.
Tension between personal standards and organizational needs.
c.
All of these answers are correct.
d.
The law and other government regulations. - correct answer ✔✔C
, 5
Which of the following controls can help minimize the pressures that might lead an employee to
commit fraud?
a.
Employee support programs.
b.
All of these answers are correct.
c.
Fair personnel policies and procedures.
d.
Open-door management policies. - correct answer ✔✔B
6
If an action is legal, it is also ethically correct.
a.
True.
b.
False. - correct answer ✔✔B
Prevention correctly answered to pass
1
For analytical review procedures performed during a financial statement audit to be most
effective in uncovering fraud, the scheme must materially impact the financial statements.
a.
True.
b.
False. - correct answer ✔✔A
2
Surprise audits can be effective in both preventing and detecting fraudulent conduct.
a.
True.
b.
False. - correct answer ✔✔A
3
,Having an auditor ask employees questions such as "Has anyone ever asked you to do anything
that you felt was illegal or unethical?" can be an effective method of uncovering fraud within an
organization.
a.
True.
b.
False. - correct answer ✔✔A
4
Factors that affect employees' ethical decisions include:
a.
Industry and organizational ethical codes.
b.
Tension between personal standards and organizational needs.
c.
All of these answers are correct.
d.
The law and other government regulations. - correct answer ✔✔C
, 5
Which of the following controls can help minimize the pressures that might lead an employee to
commit fraud?
a.
Employee support programs.
b.
All of these answers are correct.
c.
Fair personnel policies and procedures.
d.
Open-door management policies. - correct answer ✔✔B
6
If an action is legal, it is also ethically correct.
a.
True.
b.
False. - correct answer ✔✔B
