2016-FRR Practice Questions

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NEW QUESTION: 1

Refer to the exhibit. Which application protocol is in this PCAP file?
A. TCP
B. SSH
C. SSL
D. HTTP
Answer: D

NEW QUESTION: 2
__________ is internationally causing fear of imminent harmful or offensive touching but without touching or physical contact.
A. Battering
B. Assault
C. Stabbing
D. None of the above
Answer: B

NEW QUESTION: 3
Which of the following characteristics most likely would heighten an auditor's concern about the risk of
material misstatement arising from fraudulent financial reporting?
A. There is a lack of interest by management in maintaining an earnings trend.
B. Computer hardware is usually sold at a loss before being fully depreciated.
C. Monthly bank reconciliations usually include several large checks outstanding.
D. Management had frequent disputes with the auditor on accounting matters.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. Frequent disputes between management and the auditor is a fraud risk factor that
would heighten an auditor's concern about the risk of material misstatement arising from fraudulent
financial reporting.
Choice "A" is incorrect. Management's excessive interest in maintaining or increasing the stock price and
earnings trend is a fraud risk factor, but management's lack of interest in maintaining an earnings trend
would not constitute a fraud risk factor.
Choice "B" is incorrect. Since depreciation does not adjust an asset to market value, the sale of computer
hardware at a loss before being fully depreciated is not unusual and would not heighten an auditor's
concern.
Choice "D" is incorrect. Bank reconciliations with outstanding checks are not unusual and would not
heighten the auditor's concern about the risk of material misstatement. Outstanding checks can also be
verified with the bank at a later date, when the checks clear.