1

Which of the Following is NOT part of any non-Negative Confirmations which could be received by the auditors?

		Customers will not respond to all of them enquires
		Amount recorded in customers’ books are wrong
		Amount recorded in customers’ books are correct
		Customer did not understand the request

QUESTION 2

Which of the following is NOT part of auditor’s role in identifying fraud risk factors in an organization?

		The auditor should be able to Review financial statements through preliminary analytical procedures
		The auditor should be able to cooperate with top management on fraud benefits to the organization and consider compensation schemes as well.
		The auditor should be assess any decentralization process if appropriate
		The auditor should be able to determine if client has numerous manual journal entries affecting revenue process

QUESTION 3

Which of the following is NOT an immediate a respond to identifying risks of material misstatement in a company

		Develop an audit approach that contains substantive procedures and tests of controls
		Develop either qualified, adverse selection or disclaimer report to the client once there is a material misstatement.
		Develop sufficiency (quantity) and appropriateness (quality) of all procedures needed.
		Develop a customize audit program after all the risk assessment of any material misstatement

QUESTION 4

Which of this can suggest a heightened of risk of fraud in the acquisition and payment cycle?

		expected increases in gross margin
		Expenses that are at significantly normal
		Inventory that is growing at a rate greater than sales
		expected increases in the number of suppliers

QUESTION 5

What is the responsibility of the internal auditor with respect to fraud?

		The internal auditor should have sufficient knowledge to identify the indicators of fraud but is not expected to be an expert.
		The internal auditor should have the same ability to detect fraud as a person whose primary responsibility is detecting and investigating fraud.
		An internal auditor should have sufficient knowledge and training so that (s)he is able to detect fraud.
		An internal auditor’s primary role is to detect and investigate fraud.

Answer rating: 100% (QA)

Answer 1 C Amount recorded in customers books are correct Answer 2 B The auditor should be able to cooperate with top management on fraud benefits to ... View the full answer