Question 1

Which one of the following statements is true about radio frequency identification (RFID)?

Options :

A : An active RFID tag does not require a power source

B : Normally passive RFID tags store ID numbers

C : A passive RFID tag does not use an antenna

D : RFID tags require laser scanning.

Answer: B

Question 2

In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss. This response is known as:

Options :

A : Assuming the risk

B : Mitigating the risk

C : Avoiding the risk

D : Transferring the risk

Answer: D

Question 3

Effectively documenting and communicating organizational hierarchies, including the proper flow of information, can be a helpful tool in preventing fraud

Options :

A : True

B : False

Answer: A

Question 4

Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

Options :

A :

The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.

B :

The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

C :

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence

D :

The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.

Answer: A

Question 5

Toll Group has thousands of end-of-life IT assets that need to be disposed of. The senior management of Toll Group is largely concerned about sustainability in waste management, especially electronic waste. Before selecting a supplier to manage the process, the procurement team is required to assess the environmental risks regarding disposal of the assets. Risk assessment is basically based on the measurement of which factors?

Options :

A : Impact

B : Reward

C : Surveillance

D : Likelihood

E : 2 and 4 only

F : 1 and 3 only

G : 2 and 3 only

H : 1 and 4 only

Answer: H

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