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CFCI Questions (questions for CFCI) Answered Correctly To Score A+.
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CFCI Questions (questions for CFCI) Answered Correctly To Score A+.
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CFCI Questions (questionsfor CFCI) Answered
Correctly To Score A+
1. What are the three broad categories of detailed fraud auditing responses?-
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: 1. The nature of auditing procedures
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2.The timing of substantive tests may need to be modified.
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3.The extent of the procedures applied should reflect the assessment of the risks of
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n material misstatement due to fraud.
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2. Qualitative Standards of CIGIE: 1. Planning
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2. Executing investigations n
3. Reporting
4. Managing investigative findings.
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3. Evidence: Evidence is categorized as
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,- "real evidence" (any specific physical object such as an invoice);
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- "demonstrative evidence" (such as the computerized sketch or drawing of a loading
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n dock); or n
- "testimonial evidence" (such as in the oral form of a witness, or others testifying in
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n court).
Sometimes evidence may consist of all three—real, demonstrative, and testimonial
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4. Fraud Risk Assessment includes the following steps: 1: Create an FRA Team 2:
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n Identify the Organization's Universe of Potential Risks
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3: Analyze the Likelihood of Each Scheme or Scenario Occurring 4:
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n Assess the Materiality of Risk.
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5: Assess Risks Within the Context of Existing Anti-Fraud Controls
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5. There are three main categories of materiality in a FRA: 1. Inconsequential
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2. More than inconsequential
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3. Material
6. Ultimate goal of a FRA: The ultimate objective of any FRA is to guide the
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n institution's auditors in adjusting their audit plans to incorporate specific techniques
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n for detecting fraud, and to assist management in formulating and/or adjusting its
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n anti-fraud controls to reduce the risk of fraud.
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,7. Approaches to FRAs will differ from organization to organization, but most
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n FRAs focus on identifying fraud risks in six key categories:: 1. Fraudulent
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n financial reporting
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2. Misappropriation of assets n n
3. Expenditures and liabilities for an improper purpose
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4. Revenue and assets obtained by fraud
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5. Costs and expenses avoided by fraud
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6. Financial misconduct by senior management
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8. FRA step 3: Analyze the Likelihood of Each Scheme or Scenario Occurring
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n International auditing standards specify four risk levels:: 1. Remote
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, 2. More than remote n n
3. Reasonably possible n
4. Probable
9. FACTA Red Flags List of Suggested Alerts, Notifications or Warnings from a
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n Consumer Reporting Agency: 1. Suspicious Documents
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2. Suspicious Personal Identifying Information n n n
3. Unusual Use of, or Suspicious Activity Related to, the Covered Account
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4. Notice from Customers, Victims of Identity Theft, Law Enforcement Authorities, or
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n Other Persons Regarding Possible Identity Theft in Connection with Covered
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n Accounts Held by the Financial Institution or Creditors
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10.The Institute of Internal Auditors (IIA) has endorsed audit standards that
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n outline the techniques and procedures for conducting an FRA—specifically,
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n those contained in Statement of Auditing Standards 99 (SAS 99 and AU-C 240):
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n FRA is meant to assist auditors and/or fraud examiners in adjusting their audit and
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n investigation plans, and testing to focus on gathering evidence of red flags for fraud
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n schemes and scenarios that the FRA identifies
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11.According to AU-C 240 (and implied by the revised 2013 Framework), n n n n n n n n n n
n regardless of who conducts the FRA, responding to its findings requires the
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