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NEW QUESTION 24
The internal auditor's fraud-related responsibilities include which of the following?

• A. Evaluating indicators of fraud and deciding whether any further action is necessary or whether an investigation should be recommended
• B. Establishing and maintaining effective anti-fraud controls at a reasonable cost
• C. Overseeing management's actions to manage fraud risks
• D. Obtaining reasonable assurance that the organization's financial statements are free of material misstatements caused by fraud

Answer: C

NEW QUESTION 25
Gray, an independent Certified Fraud Examiner (CFE), was hired by Green, president of the ABC Corporation, to investigate allegations that one of ABC's employees is taking kickbacks. During the investigation. Gray teams that Green is involved in an unrelated fraud. Under the ACFE Code of Professional Ethics. Gray should:

• A. Report Green to law enforcement
• B. Tell the company's board of directors about Green.
• C. Resign from the engagement
• D. Not disclose the information about Green.

Answer: B

NEW QUESTION 26
Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

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

Answer: B

NEW QUESTION 27
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