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NEW QUESTION 20
Maria conducted a fraud examination that led to a valid confession of guilt from Rita. In Maria's verbal report to her superiors, she stated that, in her opinion. "Rita is guilty of embezzlement." Maria has just violated the ACFE Code of Professional Ethics.

• A. True
• B. False

Answer: B

NEW QUESTION 21
Which of the following would MOST LIKELY be a violation of the ACFE Code of Professional Ethics?

• A. Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.
• B. All of the above are violations.
• C. Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.
• D. Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Answer: C

NEW QUESTION 22
Having specialized departments within a company often increases the overall risk ot traud by the organization.

• A. True
• B. False

Answer: A

NEW QUESTION 23
According to Silk and Vogel's research, business leaders rationalize legal violations by asserting that compliance with government regulations is too costly and cuts too heavily into company profits.

• A. True
• B. False

Answer: A

NEW QUESTION 24
During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

• A. The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.
• B. The auditors should reconsider the reliability of the audit evidence they have previously obtained.
• C. The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.
• D. The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Answer: D

NEW QUESTION 25
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