According to The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing, which of the following should the internal audit team evaluate in its assessment of the risk management process?

A. The materiality of the organization s financial statements

B. The organization s fraud risk management initiatives

C. The management team's assessment of the internal controls over financial reporting

D. The organization s risk exposures relating to the sale of assets

During the course of a fraud examination. Stefan, an employee of Acme Inc., approaches Marten, a Certified Fraud Examiner (CFE) and fellow employee of Acme, and tells him that he knows of a major fraud being committed by the chief financial officer (CFO). However. Stefan says he can only provide details if Marten promises him absolute confidentiality. How should Marten respond?

A. Agree that the information will be held in confidence, even though Marten knows it will not be

B. Take Stefan's request straight to Acme Inc.'s management

C. Tell Stefan that he will try to keep the information as confidential as possible

D. Not agree to the request for confidentiality

The generation and use of relevant, quality information to support the functioning of internal control is a principle related to which component of the Committee of Sponsoring Organizations of the Treadway Commissions (COSO) Internal Control--Integrated Framework (the Framework)?

A. Risk assessment

B. Control environment

C. Monitoring

D. Information and communication

Fraud risks related lo corruption include all of the following EXCEPT

A. Espionage by competitor

B. Aiding and abetting vendor fraud

C. Payment of bribes

D. Receipt of kickbacks

Criminologist Charles McCaghy has slated that profit pressure is the single most compelling factor behind deviance by organizations

A. True

B. False