All true or false

1. The ZZZZ Best fraud was and example of a solo auditor not being independent in conducting the audit 2. A properly conducted audit can give absolute assurance that there are no material misstatements. 3. The SEC's definition of fraud includes omitting to state a material fact. 4. Fraud includes misstatement due to error. . 5. The public often considers the purpose of an audit to be the finding of all fraud. 6. Internal auditors should report to either the CEO or the CFO. 7. The PCAOB is comprised of 10 full-time members. 8. PCAOB AS 2401 (SAS 99) requires external auditors to inquire of management and of key employees. 9. Auditors should use a bottom up approach in determining which internal controls to test. 10. The IIA suggests that internal auditors conduct ethics surveys of employees. 11. PCAOB 2401 (SAS 99) includes auditors using surprise techniques 12. The PCAOB is in favor of requiring a forensic audit for all public companies. 13. Audit evidence is gathered in three fieldwork stages. 14. A clawback clause in the employment contract of management allows for the company to recover all the compensation paid to that executive, 15. Scienter refers to fraudulent actions. 16. The four legal elements of fraud include the victim incurring a loss. 17. External auditors can be considered to take a macro approach while forensic accountants take a micro approach. 18. A rule of thumb is that accounts receivable should not be greater than 15% of credit sales. 19. Some of the major turn-of-the-century frauds were discovered by the external auditors. 20. Cash flows should move in the same direction as net income. 21. Lower level CPA firm staff are often used in investigative accounting in order to reduce costs. 22. 23 A fraud hotline is an important device for detecting fraud. Like internal auditors, forensic accountants are limited by the materiality principle. The audit committee of the BOD overseas the internal control processes of the company 24. 25. . The AICPA no longer sets auditing standards