31. Generally, enhanced skepticism has three defining elements. First it includes the recognition that fraud may be present. Second, professional skepticism is exemplified by a professionals attitude, an attitude that includes a questioning mind and a critical assessment of evidence. Third, professional skepticism asks professionals to make a commitment to __________________________. 7 of 10

A. Doing whatever it takes to convict the guilty

B. Persuasive evidence to determine whether or not fraud is present

C. Never giving up when it comes to identifying and locating more evidence

D. Extending a presumption of goodwill unless or until evidence suggests otherwise

32. Fraud detection techniques require that fraud and forensic accounting professionals pay particular attention to the possibility of ________________ because it suggests deception.

A. Concealment

B. Collusion

C. Override of internal controls

D. Conversion

33. There are two major approaches to fraud detection:

A. Through tips (allegations) and the preponderance of evidence

B. Through external audits and internal audits

C. Through the identification of red flags and through a targeted risk assessment

D. Through the use of covert and overt surveillance (both physical and digital)

34. The first step to detecting fraud is to build an understanding of the organization and the environment in which it operates. The second step is to ______________________.

A. Develop an understanding of the control environmentthe environment as opposed to the controls themselves.

B. Develop an audit plan that includes discussions with senior management about potential fraud risks

C. Develop a network of insiders who may have knowledge of actual fraud

D. Remind your team of the importance of professional skepticism