Which of the following is false regarding responses to the risk of fraud?

		The auditors assessment of the risks of material misstatement due to fraud should be ongoing throughout the audit.
		Fraud perpetrators are often knowledgeable about audit procedures so auditors must try to incorporate unpredictability.
		The auditor is not required to look back at significant prior year estimates.
		The risk of management override of controls exists in almost all audits.

Which of the following is false regarding internal controls involved with IT?

		There are several benefits to internal control that result from the continued integration of IT in accounting systems.
		Reduced audit trail is a specific risk.
		IT systems improve the traditional separation of duties.
		Auditing standards describe two categories of controls for IT systems: general controls and application controls.

Which of the following is false regarding specific fraud risk areas and auditor responsibilities with regards to fraud?

		An auditor uses informational inquiry to determine if the individual is being deceptive or purposefully omitting disclosure of key knowledge of facts, events, or circumstances.
		The most common adjustment to revenue involves sales returns and allowances.
		Companies may engage in deliberate attempts to understate accounts payable and overstate income.
		Analytical procedures are one useful technique for detecting inventory fraud.

Which of the following is false regarding fraud?

		Management is responsible for implementing corporate governance and control procedures to minimize the risk of fraud.
		Because occurrences of fraudulent financial reporting often involve manipulation of revenue, auditing standards require the auditor to perform substantive rather than analytical procedures on revenue accounts.
		Most companies require employees to periodically confirm their responsibilities for complying with the code of conduct.
		Research shows that wrongdoing occurs less frequently when employees have positive feelings about their employer than when they feel abused, threatened, or ignored.