Question: Multiple Choice Questions 1 SAS No 99 Consideration of Fraud

Multiple Choice Questions:
1. SAS No. 99, Consideration of Fraud in a Financial Statement Audit, requires that audi┬Čtors report any evidence found that fraud may exist to which of these?
a. Inventory accounts
b. Cash accounts
c. Financial reports
d. All of the above

2. The title inspector general applies mostly to
a. Internal auditors.
b. The head of the internal information security department.
c. Government agents.
d. All of the above.

3. In fraud detection, a false positive is said to occur when which of these occurs?
a. A fraud indicator fails to indicate an ongoing or past fraud.
b. A fraud indicator incorrectly indicates an ongoing or past fraud.
c. A fraud indicator correctly indicates the absence of fraud.
d. None of the above.

4. The best way to optimize a loss management system is to first do which of the following?
a. Minimize total fraud costs and then minimize fraud risk.
b. Budget total fraud costs and then maximize utility.
c. Budget fraud risk and then maximize prevention effectiveness.
d. Budget total fraud costs and then minimize risk.

5. Which of the following statements is typically correct?
a. Corrective controls are more expensive than detective controls.
b. Detective controls cost about the same as preventive controls.
c. Corrective controls cost more than preventive controls.
d. None of the above.

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