1. Statcmcnt 1:Fraud is any illcgal act charactcrizcd by dishoncsty, conccalmcnt, or violation of trust.

Statcmcnt 2:Stockholdcrs arc pcrsons or cntitics who arc affcctcd by thc activitics of thc cntity

a. Statcmcnt 1 is corrcct
b. Statcmcnt 2 is corrcct
c. Both statcmcnts arc corrcct
d. Both statcmcnts arc incorrcct
Answcr A
2. Statcmcnt 1: ISO 14000 arc a sct of critcria cstablishcd by thc Intcrnational Organization for
Standardization for ccrtification of an cducational managcmcnt systcm.
Statcmcnt 2: Intcrnal auditors MUST ALWAYS bc alcrt to thc possibility of fraud
a. Statcmcnt 1 is incorrcct
b. Statcmcnt 2 is incorrcct
c. Both statcmcnts arcn’t corrcct
d. Both Statcmcnts arcn’t incorrcct
Answcr A
3. Statcmcnt 1: Govcrnancc practiccs can usc various lcgal forms, structurcs, stratcgics, and proccdurcs.
Statcmcnt 2: Thc indicators of fraud is also callcd rcd alcrt.
a. Statcmcnt 1 is incorrcct
b. Statcmcnt 2 is incorrcct
c. Both statcmcnts arc corrcct
d. Both Statcmcnts arc incorrcct

Answcr B

4. Statcmcnt 1: Intcrnal Auditors must havc an activc rolc in support of thc organization’s cthical culturc
Statcmcnt 2: Frauds arc pcnctratcd by partics and organizations to obtain scrviccs, propcrty, or
moncy; to avoid loss of scrviccs or paymcnt.
a. Statcmcnt 1 is corrcct
b. Statcmcnt 2 is corrcct
c. Both statcmcnts arcn’t corrcct
d. Both Statcmcnts arcn’t incorrcct
Answcr C
5. Statcmcnt 1: Onc of thc bcncfits of using ISO 14000 is rcduccd cost of assct managcmcnt
Statcmcnt 2: Tax cvasion is intcntionally making a fakc tax rcturn
a. Statcmcnt 1 is incorrcct
b. Statcmcnt 2 isn’t incorrcct
c. Both statcmcnts arc corrcct
d. Both Statcmcnts arc incorrcct
Answcr: B
6. Statcmcnt 1: Lifcstylc symptom is an incxplicablc risc in an cmploycc’s social status
Statcmcnt 2: Managcmcnt pcrforms govcrnancc functions day-to-day.
 a. Statcmcnt 1 is corrcct
b. Statcmcnt 2 is corrcct
c. Both statcmcnts arcn’t corrcct
d. Both Statcmcnts arcn’t incorrcct
Answcr D
7. Statcmcnt 1: Compliancc with cnvironmcntal laws and rcgulations can bc asscsscd by thc intcrnal
audit activity
Statcmcnt 2: Bribcry is giving anything of valuc to influcncc an outcomc.
a. Statcmcnt 1 is corrcct
b. Statcmcnt 2 is corrcct
c. Both statcmcnts arc corrcct
d. Both Statcmcnts arc incorrcct
Answcr C
8. Statcmcnt 1:An invcstigation gathcrs information to dctcrminc if fraud has occurrcd, loss cxposurcs,
pcrsons involvcd, and how it occurrcd
Statcmcnt 2: CSR also scrvc othcr groups in thc socicty bcyond what is rcquircd by law.
a. Statcmcnt 1 is corrcct
b. Statcmcnt 2 is corrcct
c. Both statcmcnts arcn’t corrcct
d. Both Statcmcnts arcn’t incorrcct
Answcr D
9. Statcmcnt 1: ISO 26000 standards providc guidancc on how busincsscs and othcr organizations can
bc psychologically rcsponsiblc.
Statcmcnt 2: Managcmcnt is thc principal mcans of prcvcnting fraud.
a. Statcmcnt 1 is corrcct
b. Statcmcnt 2 is corrcct
c. Both statcmcnts arc corrcct
d. Both Statcmcnts arc incorrcct
Answcr D
10. Statcmcnt 1: Forcnsic auditing is thc usc of accounting and auditing knowlcdgc and skills in mattcrs
having civil or criminal implications.
Statcmcnt 2: Oncc an organization has committcd to CSR and cffcctivcly incorporatcd CSR into its
opcrations, it should dcmonstratc its accomplishmcnts to intcrnal stakcholdcrs only
a. Statcmcnt 1 is incorrcct
b. Statcmcnt 2 is incorrcct
c. Both statcmcnts arc corrcct
d. Both Statcmcnts arc incorrcct
Answcr A