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A management and those charged with governance b cfo

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a.Management and those charged with governanceb.CFOc.External auditorsd.Internal auditorsThe correct answer is: Management and those charged with governance
Question 31CorrectMark 1 out of 1The employee in charge of authorizing credit to the company’s customers does not fully understand theconcept of credit risk. This lack of knowledge would constitute what type of deficiency.a.A deficiency of managementb.A deficiency in operation of internal controlsc.Not constitute a deficiencyd.A deficiency in the design of internal controlsThe correct answer is: A deficiency in operation of internal controlsQuestion 32CorrectMark 1 out of 1An effective system of internal controls is most likely to detect a fraud perpetrated by aa.Single managerb.Single employeec.Group of employeesd.Group of managersThe correct answer is: Single employee
Question 33CorrectMark 1 out of 1Statement 1: The Philippines is the less dangerous country in the world for journalists to operate in. StatemThe Civil Society Organizations are watchdogs organizations in monitoring the implementation of policy.a.Statement 2 is correctb.Both Statements are falsec.Both Statements are trued.Statement 1 is correctThe correct answer is: Statement 2 is correctQuestion 34CorrectMark 1 out of 1Statement 1: The fact that fraud is usually concealed can make it very difficult to detect. Statement 2:Determining fraud is a matter of applying professional skepticism.a.Both Statements are falseb.Statement 1 is correctc.Both Statements are trued.Statement 2 is correctThe correct answer is: Both Statements are true
Question 35CorrectMark 1 out of 1COSO’s three areas of focus include the following, excepta.Enterprise risk managementb.Ethics and standardsc.Fraud deterrenced.Internal ControlThe correct answer is: Ethics and standardsQuestion 36CorrectMark 1 out of 1It is described as one of the fraud quadrangle: ‘There is no sanction for violators’.a.Opportunityb.Rationalizationc.Incentive or pressured.CapabilityThe correct answer is: Rationalization
Question 37CorrectMark 1 out of 1Which of the following would an auditor typically not perform as part of gaining an understanding of thecontrol related to debt obligations?a.Recalculate interest expenseb.Inquire of management about the process for reviewing compliance with debt covenantsc.Review policies related to approval required for new debtd.Review the client’s documentation of controlsThe correct answer is: Recalculate interest expenseQuestion 38IncorrectMark 0 out of 1Statement 1: A professional accountant shall not allow a conflict of interest in compromise professional obusiness judgment. Statement 2: A professional accountant shall remain alert to changes over time in thnature of the activities, interests and relationships that might create a conflict of interest while performinprofessional activity.

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