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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Fraud Prevention and Deterrence | 25% | - Fraud deterrence strategies and controls - Fraud prevention programs and frameworks - Ethics and corporate governance - Internal control systems and evaluation - Anti-fraud policies and procedures - Fraud risk governance and organizational culture - Monitoring, auditing, and continuous improvement - Fraud risk assessment - Whistleblowing and reporting mechanisms |
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NEW QUESTION # 109
During an external audit of an organization's financial statements, Saskia, the external auditor, uncoverssignificant internal control deficiencies at the organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Saskia do regarding these findings?
Answer: C
Explanation:
ISA 265 requires that significant deficiencies in internal control identified during an audit be communicated in writing to those charged with governance. The auditor is not obligated to inform regulatory agencies unless required by law (eliminating A). Internal control audits are not separate engagements under standard financial statement audits (eliminating B). Withdrawalfrom the engagement is a last resort and only appropriate under severe circumstances beyond internal control issues (eliminating D).
NEW QUESTION # 110
According to Silk and Vogel's research, which of the following is one of the ways that businesses rationalize illegal conduct?
Answer: C
Explanation:
Silk and Vogel's research found that organizations often rationalize unethical or illegal behavior by diffusing responsibility across a group, thus minimizing perceived individual culpability.
This"shared guilt" justification is reflected in option D. The other options either misunderstand the research or do not reflect actual rationalizations used in white-collar crime contexts.
NEW QUESTION # 111
Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.
Answer: B
Explanation:
ACFE Code of Professional Ethics:
Article II prohibits all illegal and unethical conduct, with no exceptions for unknowing violations of the law. CFEs are expected to maintain a high standard of professional integrity and responsibility.
Why B is Correct:
Ignorance of the law is not an acceptable defense under the ACFE Code of Ethics. Professionals must ensure they understand and comply with applicable laws.
NEW QUESTION # 112
During an external audit of an organization's financial statements. Elena, the external auditor, uncovers significant internal control deficiencies at the audit client's organization. She believes these deficiencies could result in a material misstatement of the financial statements. Which of the following should Elena do with regard to these findings?
Answer: B
Explanation:
Responsibilities of an External Auditor:
When significant internal control deficiencies are discovered, the auditor is required to report them to senior management and, where appropriate, the audit committee.
The purpose is to ensure that the organization is informed of the risks and can take corrective actions.
NEW QUESTION # 113
In the context of a fraud examination, integrity requires all of the following EXCEPT:
Answer: B
Explanation:
Integrity in Fraud Examination:
Integrity involves trustworthiness, ethical behavior, and transparency. Admitting errors is a critical part of maintaining professional integrity.
Why D is Correct:
Refusal to admit errors is inconsistent with the ethical and professional standards of fraud examination.
NEW QUESTION # 114
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