Question 1

Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

Options :

A :

The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

B :

The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

C :

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence

D :

The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Answer: A

Question 2

Which of the following is TRUE regarding the communication of the fraud risk assessment process?

Options :

A :

The more personalized the communication, the more effective it will be in encouraging employees to participate

B :

The communication should be made in a format mat is most appropriate for the culture of the organization

C : The communication should be visibly disseminated throughout the business

D : All of the above

Answer: D

Question 3

Which of the following Is TRUE regarding the reporting of the fraud risk assessment results?

Options :

A :

The fraud risk assessment report should be delivered in a style most suited to the language of the business

B :

The fraud risk assessment report should contain a detailed, comprehensive list of every assessment finding

C :

A fraud risk assessment report should reflect the assessment team's subjective perspective regarding the risks identified

D : All of the above

Answer: A

Question 4

Toll Group has thousands of end-of-life IT assets that need to be disposed of. The senior management of Toll Group is largely concerned about sustainability in waste management, especially electronic waste. Before selecting a supplier to manage the process, the procurement team is required to assess the environmental risks regarding disposal of the assets. Risk assessment is basically based on the measurement of which factors?

Options :

A : Impact

B : Reward

C : Surveillance

D : Likelihood

E : 2 and 4 only

F : 1 and 3 only

G : 2 and 3 only

H : 1 and 4 only

Answer: H

Question 5

Which of the following best defines ‘exponential moving average’?

Options :

A :

A process by which the reorder of an item is triggered by the inventory level dropping to a predetermined level

B :

A forecasting technique where the average is calculated by dividing the sum of the values by the number of values

C : A forecasting technique where each demand is multiplied by a weighting factor

D :

A process by which a decision is taken at a period end or review point to determine how much to reorder

Answer: C

Confidently Practice Online with Free CFE-Fraud-Prevention-and-Deterrence Exam Cram

Buying Options: