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NEW QUESTION: 1
Which statement is true regarding the three fraud risk factors (incentives/pressures, opportunity, and
rationalization/attitude)?
A. Lack of observation of all three fraud risk factors indicates that fraud has not occurred.
B. The fraud risk factors should be discussed by engagement personnel during planning.
C. The existence of all three fraud risk factors indicates that fraud has occurred.
D. The auditor should determine whether and to what extent fraud risk factors are present as part of the
final overall review stage of the audit.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. During planning, the audit team is required to discuss the potential for material
misstatement due to fraud, and the fraud risk factors should be included in that discussion.
Choice "A" is incorrect. The auditor should determine whether and to what extent fraud risk factors are
present during the planning stage of the audit, not during the final overall review stage.
Choice "C" is incorrect. The existence of all three fraud risk factors does not necessarily imply that fraud
has occurred, although it is indicative of a greater risk of fraud.
Choice "D" is incorrect. Lack of observation of all three fraud risk factors does not necessarily imply that
fraud has not occurred, as one factor may be significant enough on its own to result in fraud.

NEW QUESTION: 2
Which of the following addresses can be used for web management address of USG product? (Choose three.)
A. Interface Address
B. Sub-interface address
C. AUX interface address
D. Slave IP address of the interface
Answer: A,B,D

NEW QUESTION: 3
A portfolio manager purchases a floating rate mortgage backed security that would
currently provide a 4% yield to the company. Since mortgage rates have been fluctuating significantly over the past month, the manager is thinking about entering into an interest rate swap to hedge against the rate movements. Although the manager would remove most of the price sensitivity of the asset by executing the swap, it would also lower the total yield on the investment due to swapcosts. What objective in the company investment policy is guiding the portfolio manager's decision?
A. Preservation of principal
B. Risk analysis
C. Risk/return trade off
D. Performance measurement
Answer: C