ACFE CFE-Fraud-Prevention-and-Deterrence Exam With Confidence Using Practice Dumps

Responsibilities of an External Auditor:

When significant internal control deficiencies are discovered, the auditor is required to report them to senior management and, where appropriate, the audit committee.

The purpose is to ensure that the organization is informed of the risks and can take corrective actions.

Analysis of Other Options:

A. Suspend the audit:Not required under auditing standards.

B. Report to law enforcement:Only if fraud or illegal activities are confirmed, which is not implied here.

D. Correct deficiencies independently:This is beyond the auditor's scope of responsibilities.

Conclusion:The correct response is to provide a written communication about the findings to senior management.

Understanding G20/OECD Principles of Corporate Governance:These principles provide a framework to improve corporate governance worldwide. Key elements include board responsibilities, shareholder rights, equitable treatment, and stakeholder roles.

Analysis of Options:

A. Guidance on board structures:This is included in the principles to ensure effective governance and oversight.

C. Framework for corporate governance:Governments are encouraged to create legal and regulatory frameworks supporting corporate governance.

D. Stakeholder importance:Stakeholders' roles in governance are recognized, acknowledging their contribution to sustainable business practices.

B. Stronger protection for foreign shareholders:The principles advocate for equitable treatment of all shareholders, not preferential treatment for any group.

Conclusion:Option B contradicts the principle of equitable treatment, making it the correct answer.

Comprehensive and Detailed in Depth Explanation:

The COSO framework outlines monitoring as one of its five core components, which involves evaluating the effectiveness of internal controls over time. Monitoring includes both ongoing evaluations and separate evaluations, which is exactly what Julia is initiating. This distinguishes monitoring (correct) from control activities (which pertain to execution of policies), risk assessment (which identifies and analyzes risks), and control environment (which is the tone at the top).