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.

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Criminologist Charles McCaghy has stated that regulatory pressure is the single most compelling factor behind deviance by organizations.

• A.True
• B.False

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Which of the following is FALSE regarding a fraud risk assessment?

• A.The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.
• B.The assessment should be used to improve employee fraud awareness
• C.The assessment team should consider how employees behave as part of its assessment
• D.The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.

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According to the routine activities theory, all of the following are important elements that influence crime EXCEPT:

• A.The presence of motivated offenders
• B.The lack of accountability for misdeeds
• C.The absence of capable guardians
• D.The availability of suitable targets

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While, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination She did not find fraud, but. In White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud Under the ACFE Code of Professional Ethics.
White may include her opinion on the controls in her report to management.

• A.True
• B.False

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