ACFE Certified Fraud Examiner CFE-Fraud-Prevention-and-Deterrence New Questions

It functions as a reference and benchmark for ethical guidance.

It offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.

It acts as a substitute for legal and regulatory requirements that apply to the profession.

It replaces the need for individuals to consult their own principles.

The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

The internal audit function is permitted, but not required, to periodically report about the organization ' s fraud risks to senior management and the board of directors.

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.

The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

The policy should not include discussions of any legal considerations to limit potential legal liability in the future.

The policy should include language ensuring that every allegation and offender will be managed in a uniform manner.

The policy should be drafted as broadly and generally as possible so that it can easily be applied across all departments and jurisdictions.

The policy should avoid any specific examples of what is considered fraud so that management is not limited to those situations when it needs to terminate a dishonest employee.

In conducting the audit, Alicia’s objectives are likely narrower than those of a private-sector financial statement audit.

Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.

If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.