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NEW QUESTION 41
Which of the following is FALSE regarding proactive fraud auditing procedures?

• A. Fraud assessment questioning techniques are most appropriately used as part of the normal audit process
• B. Fraud audit procedures should be designed to incorporate an element of surprise.
• C. Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods
• D. Implementing proactive fraud audit procedures demonstrates management's intention to aggressively seek out possible fraudulent conduct

Answer: C

NEW QUESTION 42
The Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing states that

• A. The internal auditor must apply the skill and care of an expert whose primary responsibility is investigating fraud
• B. The internal auditor must apply the skill and care of an expert whose primary responsibility is detecting fraud.
• C. The internal auditor must apply the skill and care of a reasonably prudent and competent internal auditor
• D. The internal auditor must apply the skill and care of an unbiased, infallible audit professional.

Answer: D

NEW QUESTION 43
Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

• A. Drawing conclusions based upon evidence
• B. Engaging in behavior that is against the law
• C. Acting in a way that could be deemed unethical by the industry
• D. Participating in an activity where there is an undisclosed conflict of interest

Answer: A

NEW QUESTION 44
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