WGU c254 pre assessment questions with verified
answers
According to SAS 99, why is brainstorming important to auditors? Ans✓✓✓ To
avoid overreacting to the red flags that occur in the audit
AICPA Ans✓✓✓ Established with the purpose of re-examing the auditor's
responsibility to detect management fraud
As part of being a good ethical corporate citizen, what does Federal Executive
Order 11246 require of organizations working under a government contract?
Ans✓✓✓ Affirmative action programs in place
Audit committee must approve all services,
- audit committee must pre-approve all services (both audit and non audit service
not specially prohibited) Ans✓✓✓ True
Auditors reports to who? Ans✓✓✓ Audit Committee
Companies are finding that having a fraud policy that is separates, and distinct
from the code of ethics is a valuable tool for preventing fraud Ans✓✓✓ True
COSO Ans✓✓✓ Offer guidance and insight into the design and implementation of
international controls.
Fraud Exposure Rectangle Ans✓✓✓ 1) Management and Directors
, 2) Relationship with Others
3) Organization and Industry
4) Financial Results and Operating Characteristics
How can financial statement fraud impact stakeholders? Ans✓✓✓ Fraud can be
an embarrassment to the audit profession.
How do fraudulent financial statements impact stakeholders and the markets?
Ans✓✓✓ Financial statement fraud leads investors to lose confidence.
How often must the lead audit partner and audit review partner be rotated under
the Sarbanes-Oxley Act? Ans✓✓✓ Every five years
Median fraud amount Ans✓✓✓ 12.05 Million
Prior to the Sarbanes-Oxley regulations and according to SAS 16, under what
circumstances can auditors rely upon the truthfulness of records obtained from
the client? Ans✓✓✓ Until there is evidence to suggest otherwise
PSAOB- Ans✓✓✓ Established by SOX to protect investing public
SAS 99 Ans✓✓✓ Identified ways for auditors to assess fraud risk
SOX Ans✓✓✓ established to protect investors
answers
According to SAS 99, why is brainstorming important to auditors? Ans✓✓✓ To
avoid overreacting to the red flags that occur in the audit
AICPA Ans✓✓✓ Established with the purpose of re-examing the auditor's
responsibility to detect management fraud
As part of being a good ethical corporate citizen, what does Federal Executive
Order 11246 require of organizations working under a government contract?
Ans✓✓✓ Affirmative action programs in place
Audit committee must approve all services,
- audit committee must pre-approve all services (both audit and non audit service
not specially prohibited) Ans✓✓✓ True
Auditors reports to who? Ans✓✓✓ Audit Committee
Companies are finding that having a fraud policy that is separates, and distinct
from the code of ethics is a valuable tool for preventing fraud Ans✓✓✓ True
COSO Ans✓✓✓ Offer guidance and insight into the design and implementation of
international controls.
Fraud Exposure Rectangle Ans✓✓✓ 1) Management and Directors
, 2) Relationship with Others
3) Organization and Industry
4) Financial Results and Operating Characteristics
How can financial statement fraud impact stakeholders? Ans✓✓✓ Fraud can be
an embarrassment to the audit profession.
How do fraudulent financial statements impact stakeholders and the markets?
Ans✓✓✓ Financial statement fraud leads investors to lose confidence.
How often must the lead audit partner and audit review partner be rotated under
the Sarbanes-Oxley Act? Ans✓✓✓ Every five years
Median fraud amount Ans✓✓✓ 12.05 Million
Prior to the Sarbanes-Oxley regulations and according to SAS 16, under what
circumstances can auditors rely upon the truthfulness of records obtained from
the client? Ans✓✓✓ Until there is evidence to suggest otherwise
PSAOB- Ans✓✓✓ Established by SOX to protect investing public
SAS 99 Ans✓✓✓ Identified ways for auditors to assess fraud risk
SOX Ans✓✓✓ established to protect investors
