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NEW QUESTION 47
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

  • A. All of the above
  • B. The organization's incentive programs
  • C. The possibility of management's override of controls
  • D. Risks to the organization's reputation

Answer: A

 

NEW QUESTION 48
According to modern criminological studies, which of the following is the determinant aspect of white-collar crime'?

  • A. Absence of risk factors
  • B. Organizational opportunity
  • C. Potential legal punishment
  • D. Social status

Answer: D

 

NEW QUESTION 49
Glenda. an internal auditor, and Bridgette. an accounts receivable clerk, have had several heated disagreements over accounting procedures and policies Glenda has just been told that she will be the lead on the company s fraud risk assessment. During the fraud risk assessment. Glenda should:

  • A. Automatically designate the accounts receivable department as a high-risk area
  • B. Confront Bridgette about the disagreements and discuss how they increase the departments risk of fraud
  • C. Have someone else perform the fraud risk assessment work related to the accounts receivable departments activities
  • D. Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department

Answer: B

 

NEW QUESTION 50
Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

  • A. Management should express risk appetite in a manner that is appropriate for and unique to the organization s culture and operations.
  • B. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
  • C. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives
  • D. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program s effectiveness

Answer: C

 

NEW QUESTION 51
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