QUESTION: 13

Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.
Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company's cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.
Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor's office to provide the client's file. Susan complied with the court order, even though she did not have the client's authorization to do so.
All of the above are violations

Answer(s): B

Patrick is conducting an external audit of a company in a jurisdiction that is subject to International Standards on Auditing (ISAs).
While undertaking his audit procedures, he discovers evidence that senior management has been fraudulently manipulating the financial statements.
Which of the following is Patrick's BEST response to these findings?

Patrick should confront management with his audit findings and try to get a confession.
Patrick should immediately report his findings to local law enforcement authorities.
Patrick should not disclose his findings to any other parties due to client confidentiality
Patrick should report his findings to those charged with governance of the organization.

Answer(s): D

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QUESTION: 15

Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

Transparency
Responsibility
Fairness
Accountability

Answer(s): B

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QUESTION: 16

Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?

Professional skepticism means beginning all assignments with the belief that something is amiss.
Professional skepticism involves maintaining a mindset that no fraud has occurred
Fraud examiners should form the engagement hypothesis without regard to the available preliminary information.
Fraud examiners should not relax their skeptical attitudes under any circumstances.

Answer(s): D

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QUESTION: 16