1 detection of fraud 38. Which of the following statements regarding responsibility of fraud are true? Only those charged with governance are responsible for the prevention and Both those charged with governance and management are responsible for the prevention and detection of fraud III. The auditor is responsible for detecting any material fraud a) I only b) II only c) I and III d) II and II 39. In which of the following situations is the duty of confidentiality most likely to be breached? a)- When information is disclosed in a court of law b) When information is disclosed in response to a formal investigation by ICA-G c) If the accountant obtains authorization from the client before disclosing the information d) If information is disclosed after the accountant has resigned from their position with the employer 40. Which of the following statements explains one of the reasons why external audits provide only reasonable, but not absolute, assurance? a) Some reliance is placed on the work of internal audit b). Not all transactions and balances are examined c) The audit has to be completed within a specific timeframe d) Not all members of the audit team are fully qualified accountants 41. When may gifts made to an accountant within a workplace setting be accepted? a) When they are significant in value b) If they are intended to encourage unethical behavior c) When they are made in normal course of public relations- d) When you are authorized by your senior management to give an expensive gift to the external accountant 42. What type of threat is most likely to arise when a client with a dominant and persistent personality attempts to influence an accountant's professional judgement? a) Advocacy b) Familiarity c) Self-interest d) Intimidation Page 9 of 11