Dear Tutors,

Please help me understand the below 4 multiple choice questions. Thank you!

1) Under current auditing standards, the auditor is required to:

Undertake a fraud-risk assessment but not for planning and performing auditing procedures to detect immaterial misstatements unless such misstatements are caused by fraud (rather than error).

Question 5 options:

Undertake a fraud-risk assessment but not for planning and performing auditing procedures to detect immaterial misstatements.

Undertake a fraud-risk assessment to include planning and performing auditing procedures to detect immaterial misstatements.

Undertake a fraud-risk assessment but not for planning and performing auditing procedures to detect immaterial misstatements unless such misstatements are caused by fraud (rather than error).

Undertake a fraud-risk assessment to include planning and performing auditing procedures to detect immaterial misstatements whether caused by fraud or error.

2). If a company generates $12,000,000 in annual sales and has an operating margin of 5%, how many additional dollars in sales would it need to generate to make up for fraud losses of $180,000?

Question 6 options:

$3,600,00

$360,000

$180,000

$1,800,000

3). According to the ACFE's 2016Report to the Nations on Occupational Fraud and Abuse, _______ remain the most frequent means by which occupational fraud is detected.

Question 8 options:

Internal Audits

Management Reviews

Tips

Account Reconciliations

4). Four common elements to occupational fraud and abuse schemes were first identified by ACFE in its 1996Report to the Nation on Occupational Fraud and Abuse.Which of the following does not contain all four elements?

Question 11 options:

The activity is clandestine, violates the employee's fiduciary duties to the organization, is committed for the purpose of direct or indirect financial benefit to the employee, may or may not result in costs to the employing organization's assets, revenues, or reserves.

The activity is clandestine, violates the employee's fiduciary duties to the organization, is committed for the purpose of direct or indirect financial benefit to the employee, and is a violation of state and/or federal law(s).

The activity is clandestine, violates the employee's fiduciary duties to the organization, is committed for the purpose of direct or indirect financial benefit to the employee, and costs the employing organization assets, revenues, or reserves.

The activity is clandestine, violates the employee's non-fiduciary duties to the organization, is committed for the purpose of direct or indirect financial benefit to the employee, and costs the employing organization assets, revenues, or reserves.