Certified Fraud Examiner - Fraud Prevention and Deterrence: CFE-FRAUD-PREVENTION-AND-DETERRENCE

Which of the following is TRUE regarding the reporting of the fraud risk assessment results7

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

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

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

D. All of the above

Which of the following is FALSE regarding the process of defining the objective of the fraud risk management program?

A. Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program s effectiveness

B. Management should express risk appetite in a manner that is appropriate for and unique to the organization s culture and operations.

C. Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.

D. Management must consider the total amount of fraud risk it is willing to accept when determining fraud risk management objectives

According to International Auditing Standard (ISA) 240. the two types of intentional financial statement misstatements that are relevant to the auditor are

A. Misstatements resulting from fraudulent financial reporting and misstatements resulting from misappropriation of assets

B. Misstatements resulting from revenue manipulation and misstatements resulting from expense manipulation

C. Misstatements affecting the income statement and misstatements affecting the balance sheet

D. Immaterial misstatements and material misstatements