ACFE - Fraud Prevention UPDATED KEY EXAM
Questions And CORRECT Answers
detecting illegal acts - CORRECT ANSWERS The Private Securities Litigation Reform Act
(PSLRA), passed in 1995, sets forth several responsibilities for independent auditors of public
companies. One of the requirements is that each audit of the financial statements of a public
company includes procedures designed to provide reasonable assurance of detecting illegal acts
that would have a direct and material effect on the determination of financial statement
amounts.
AU-C Section 240 - CORRECT ANSWERS -establish standards for auditors in fulfilling their
responsibilities related to fraud during a financial statement audit
- requires auditors to hold a brainstorming session to discuss the potential for material
misstatements due to fraud
Public Company Accounting Oversight Board Auditing Standard 2201 - CORRECT
ANSWERS Performing an audit of an entity's internal controls over financial reporting
G20/OECD Principles of Corporate Governance - CORRECT ANSWERS required to be
implemented by all corporations in the jurisdictions that have officially adopted the Principles.
Corporate governance - CORRECT ANSWERS refers to the oversight responsibilities of
different parties for an organization's direction, operations, and performance.
purpose of corporate governance - CORRECT ANSWERS Encourage the efficient use of
resources and require accountability for the stewardship of those resources.
, audit committee - CORRECT ANSWERS Sarbanes-Oxley Act- responsible for establishing
procedures to handle complaints regarding irregularities in a publicly traded company's
accounting methods, internal controls, or auditing matters
Shareholders - CORRECT ANSWERS the owners of corporations; they are primarily
concerned with maximizing the return on their investment
responsible for holding the board of directors accountable for proper governance and oversight
G20/OECD Principles of Corporate Governance - CORRECT ANSWERS provides guidance
for policymakers in evaluating and improving the legal, regulatory, and institutional framework
for corporate governance.
board of directors - CORRECT ANSWERS responsible for overseeing business operations by
assessing the strategy and underlying purpose of management's decisions and actions
Treadway Commission - CORRECT ANSWERS National Commission on Fraudulent Financial
Reporting
- the purpose of defining the responsibility of the auditor in preventing and detecting fraud
Management - CORRECT ANSWERS responsible for directing employees to carry out
business activities and managing their performance of those task
Legitimacy - CORRECT ANSWERS the essential ingredient in what gives governments and
leaders authority.
theory of differential association - CORRECT ANSWERS used frequently to explain white-
collar criminality
Criminal behavior is acquired through participation with intimate personal groups.
Questions And CORRECT Answers
detecting illegal acts - CORRECT ANSWERS The Private Securities Litigation Reform Act
(PSLRA), passed in 1995, sets forth several responsibilities for independent auditors of public
companies. One of the requirements is that each audit of the financial statements of a public
company includes procedures designed to provide reasonable assurance of detecting illegal acts
that would have a direct and material effect on the determination of financial statement
amounts.
AU-C Section 240 - CORRECT ANSWERS -establish standards for auditors in fulfilling their
responsibilities related to fraud during a financial statement audit
- requires auditors to hold a brainstorming session to discuss the potential for material
misstatements due to fraud
Public Company Accounting Oversight Board Auditing Standard 2201 - CORRECT
ANSWERS Performing an audit of an entity's internal controls over financial reporting
G20/OECD Principles of Corporate Governance - CORRECT ANSWERS required to be
implemented by all corporations in the jurisdictions that have officially adopted the Principles.
Corporate governance - CORRECT ANSWERS refers to the oversight responsibilities of
different parties for an organization's direction, operations, and performance.
purpose of corporate governance - CORRECT ANSWERS Encourage the efficient use of
resources and require accountability for the stewardship of those resources.
, audit committee - CORRECT ANSWERS Sarbanes-Oxley Act- responsible for establishing
procedures to handle complaints regarding irregularities in a publicly traded company's
accounting methods, internal controls, or auditing matters
Shareholders - CORRECT ANSWERS the owners of corporations; they are primarily
concerned with maximizing the return on their investment
responsible for holding the board of directors accountable for proper governance and oversight
G20/OECD Principles of Corporate Governance - CORRECT ANSWERS provides guidance
for policymakers in evaluating and improving the legal, regulatory, and institutional framework
for corporate governance.
board of directors - CORRECT ANSWERS responsible for overseeing business operations by
assessing the strategy and underlying purpose of management's decisions and actions
Treadway Commission - CORRECT ANSWERS National Commission on Fraudulent Financial
Reporting
- the purpose of defining the responsibility of the auditor in preventing and detecting fraud
Management - CORRECT ANSWERS responsible for directing employees to carry out
business activities and managing their performance of those task
Legitimacy - CORRECT ANSWERS the essential ingredient in what gives governments and
leaders authority.
theory of differential association - CORRECT ANSWERS used frequently to explain white-
collar criminality
Criminal behavior is acquired through participation with intimate personal groups.
