Beyond publishing findings of internal controls, fraud and misstatements, auditors must
also publish findings on:
a.Compliance with certain contractual agreements or regulatory requirements.
b.Compliance with other auditors findings.
c.Adherence to industry ratio standards.
d.All of the above.
Outline the different options for fraud loss recovery
Describe the Objectives and Scope of the Investigation that may be stated in an
engagement letter.
Which title of the SOX has an objective of requiring auditors to report certain
information to their clients’ audit committees?
a.Title II.
b.Title VI.
c.Title VII.
d.Title IX.
If a computer that needs to be investigated is currently turned off, what should be done?
a.It should be turned on and investigative work should begin immediately.
b.It should be dismantled and the hard drive should be installed in a separate machine.
c.It should not be turned back on.
d.The main user of the computer should be made to turn it back on.
When does the fraud investigation engagement process end?
a.With first contact to an organization.
b. After a 12-month follow-up audit
c. With a complete agreement regarding the fraud-investigation services to be provided
by the investigator.
d. Upon conviction of a criminal.
If the fraud investigator is not an employee of the IRS, or a member of a federal agency
that can obtain tax records via subpoena, how much he obtain the information?
a. Through a bench warrant.
b. Through discovery or voluntary consent of the tax payer.
c. Through a subpoena issued by a Grand Jury.
d. All of the above
If a company has changed accounting principles, the auditor will issue what type of
statement?
a.Lack of accounting standards.
b.Change in costing principles.
c.Lack of consistency.
d.Misstatement of accounting principles.
How does the concealment of assets fraud occur in bankruptcy?
Disputes that are settled out of court are referred to as?
a.Settlements.
b.Alternative dispute resolution.
c.Judgments.
d.Verdicts.
When is a Daubert determination is normally made?
a.In the grand jury.
b.In a “mini-trial” that is held before the judge but outside the presence of the jury.
c.On appeal.
d.By the U.S. Supreme Court.
In cases where creditors force involuntary bankruptcy, what is a factor that may deem it
to be an abusive filing?
a.If they attempt to file for more than the actual debit that is owed.
b.If the debtor actually has the ability to repay.
c.If there is only one creditor.
d.All of the above.
What is link analysis?
a.It is the analysis between modified documents and the individual who modified them.
b.It is a process that allows information in various databases and files to be evaluated
and integrated in such a way that associations become apparent.
c.It is the process that allows private databases to be compared to public databases.
d.It is the linking of the money trail through large cash deposits.
Describe the risk assessment three-step process.
What is one of the major sources of power for the La Cosa Nostra Crime Group?
a.Violence.
b.Domination of drug trafficking.
c.Domination of labor unions.
d.Vast monetary resources.
What is the major change to restitution under Section 308-Fair funds for investors?
a.Investors are guaranteed full restitution of any losses from the date of their purchase
of the corporations securities.
b.The U.S. Treasury cow pay restitution to investors.
c.The corporation will now pay all civil penalties to its investors.
d.The CEO and CFO’s personal assets can be liquidated to pay restitution to investors.
Explain and give examples of the use of a fraud theory.
Which of the following is an example of observation evidence?
a. Printed cash receipts
b. Surveillance tape of an employee putting money in their pockets.
c. Expert testimony regarding financial statements.
d.All of the above