16. Which of the following statements accurately addresses the existence of fraud risk factors when obtaining an understanding of the entity and its environment?

	A.	Fraud risk factors indicate definite instances of fraud that will affect an organization's financial statements.
	B.	If a fraud risk factor is present, the auditing standards provide specific rules for whether this means the risk of material misstatement is affected.
	C.	Risk factors related to employees' financial stress or dissatisfaction is most important to the risk of misappropriation of assets.
	D.	An overall response to fraud risk factors should be considered when the auditor develops the detailed audit plan for the engagement.

17. What are the five elements of internal control outlined in COSO's Internal ControlIntegrated Framework?

	A.	Control environment, risk assessment, cybersecurity, monitoring, and control activities.
	B.	Control environment, fraud risk factors, information and communications, monitoring, and control activities.
	C.	Control environment, fraud risk factors, cybersecurity, monitoring, and control activities.
	D.	Control environment, risk assessment, information and communication, monitoring, and control activities.

18. Controls addressing fraud risks most likely relate to which of the following?

	A.	Control environment and control activities.
	B.	Monitoring and risk assessment.
	C.	Information and communication.
	D.	Information technology (IT) controls and cybersecurity.

19. Which of the following guidance applies to the use of an IT specialist?

	A.	The determination of whether an IT specialist is necessary should not be made until fieldwork has begun.
	B.	An IT specialist can come from inside the auditor's firm or be an outside professional.
	C.	If an IT specialist is used, the auditor does not need to be personally knowledgeable about IT.
	D.	An IT specialist will always be considered a member of the engagement team when performing work on the audit.

20. The recommended approach to understanding an organization's internal control, as outlined in this course, does which of the following?

	A.	Starts at the individual control activity level and works up to the financial statement level.
	B.	Starts at the financial statement level and works down to individual control activity level.
	C.	Focuses on individual control activity level and spends little time at the financial statement level.
	D.	Focuses on the financial statement level and spends little time on individual control activity level.