16. A fraud risk assessment should include an evaluation of all of the following EXCEPT: A. Experience level of management B. Effectiveness and efficiency of operations C. Compliance with laws, regulations, and contracts D. Reliability and integrity of financial information

17. Internal controls related to operational objectives are established to ensure all of the following EXCEPT: A. All valid transactions are captured and entered for processing on a timely basis. B. Functions are adequately segregated. C. Transactions are executed in accordance with authorization. D. Adequate physical control is maintained over assets and accounting records.

18. To increase the likelihood of detecting financial statement fraud, which of the following should be implemented? A. Oversight and guidance from middle management B. A tone at the top from the audit committee that evokes fraud deterrence C. An ethics committee D. An independent internal audit function

19. In a risk-based audit approach, auditors focus their resources on which area? A. Rotate areas each year B. Randomly select areas C. Areas of highest concern D. Areas requested by management