Which of the following might be considered a good characteristic for a fraud risk assessment team? A.
Question:
A. The team should always consist of four individuals.
B. The team should consist of individuals with the same knowledge, skills, and perspectives.
C. The team members should have experience in gathering and eliciting information.
D. The team members should only include internal resources.
8. ___________ enable the fraud risk assessor to observe the interactions of employees as they discuss a question or issue.
A. Interviews
B. Surveys
C. Focus groups
D. Anonymous feedback mechanisms
9. Which of the following is an example of a common external fraud scheme?
A. An employee steals a check from their employer and cashes it at a local bank.
B. A competitor steals an organization’s trade secrets.
C. An employee makes fraudulent journal entries to increase revenue.
D. An employee submits fraudulent expenses along with legitimate expenses.
10. The aiding and abetting of fraud by outside parties, such as customers and vendors, is considered a fraud risk pertaining to which category of fraud?
A. Fraudulent financial reporting
B. Asset misappropriation
C. Corruption
D. Improper disclosure
11. Which of the following is an example of a preventive control?
A. Performing background checks on employees
B. Establishing a whistleblower hotline
C. Implementing continuous auditing techniques
D. Implementing proactive controls for fraud detection
12. The ___________ is an assessment of how the organization and its people behave or are perceived to behave.
A. Environmental risk index
B. Culture quotient
C. Prevent/detect index
D. Leadership risk profile
13. In response to a risk identified during a fraud risk assessment, management decides to exit a business activity because the control measures required to protect the organization against the identified threat are too expensive. This response is known as:
A. Avoiding the risk
B. Transferring the risk
C. Mitigating the risk
D. Assuming the risk
14. In response to a risk identified during a fraud risk assessment, management decides to implement countermeasures, such as prevention and detection controls. This response is known as:
A. Avoiding the risk
B. Transferring the risk
C. Mitigating the risk
D. Assuming the risk
15. To maximize the effectiveness of the fraud risk assessment process, which of the following should be considered when reporting results:
A. The risk assessment team should report subjective results.
B. Details related to each facet of the risk assessment process should be reported.
C. Several methods of reporting should be used so that results resonate with management.
D. The report should contain recommendations that are clear and measurable.
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg