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Independent auditors play a critical role in enhancing the reliability of financial information by financial position and performance in compliance with accepted accounting standards.
A. True
B. False
Answer: A
NEW QUESTION # 117
Which of the following factors is the determining aspect of white-collar crime according to modern criminological studies?
A. Psychological temperament
B. Organizational opportunity
C. Educational background
D. Social status
Answer: B
NEW QUESTION # 118
Mary is charged with implementing a fraud reporting program on behalf of her organization. Which of the following is a best practice that Mary should follow to ensure that the program is successful?
A. Mary should inform employees that they are required to report any information about potential fraud directly and only to their immediate supervisor.
B. Mary should inform employees that they will be held accountable for reporting tips that cannot be verified.
C. Mary should inform employees that the names of all individuals who report misconduct will be shared with the organization's governing body and law enforcement.
D. Mary should inform employees of the precise methods for reporting potential fraud, such as completing an online form.
Answer: D
Explanation:
Comprehensive and Detailed in Depth Explanation:
For a fraud reporting program to be effective, employees must clearly understand how to use it. Providing specific and user-friendly reporting methods, such as hotlines, email addresses, or online forms, increases accessibility and usage. Options A and D discourage reporting, while B limits it unnecessarily, especially in cases where supervisors may be involved.
Reference:Fraud Examiners Manual, 2022, Fraud Prevention and Deterrence, Fraud Prevention Programs - Section 4.602.
NEW QUESTION # 119
Which of the following is among the board of directors' primary responsibilities related to fraud risk management?
A. Implementing the fraud risk management program
B. Punishing fraud perpetrators discovered through fraud risk management activities
C. Designing the fraud risk management program
D. Overseeing the organization's fraud risk management activities
Answer: D
Explanation:
Board Responsibilities in Fraud Risk Management:
* The board plays a critical role in overseeing the organization's fraud risk management activities to ensure accountability and effective governance.
Why A is Correct:
* The board provides high-level oversight but does not typically involve itself in the design or implementation of the fraud risk management program.
Why Other Options are Incorrect:
* B and D: Design and implementation are management responsibilities.
* C: Punishment of fraud perpetrators is not directly within the board's purview.
NEW QUESTION # 120
In the context of fraud examination, integrity requires all of the following EXCEPT:
A. Independence of mental attitude
B. An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong
C. Avoidance of differences of opinion
D. Subordination of desires for personal gain to the interests of clients, employers, and the public
Answer: C
NEW QUESTION # 121
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