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According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?
According to the 2020 Report to the Nations, which of the following is the MOST COMMON method by which frauds are detected?A . Internal audit B. Confession C. Tips D. External auditView AnswerAnswer: C
Which of the following statements is FALSE regarding an organization's fraud risk management program?
Which of the following statements is FALSE regarding an organization's fraud risk management program?A . The program must include mechanisms to monitor and identify breaches in compliance. B. The responsibility of handling suspected incidents of noncompliance should be delegated to someone outside of the company. C. Formal sanctions for intentional...
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:A . The organization's incentive programs B. The possibility of management's override of controls C. Risks to the organization's reputation D. All of the aboveView AnswerAnswer: D
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.
Reporting known incidents of fraud to law enforcement can be an effective fraud prevention mechanism.A . True B. FalseView AnswerAnswer: A
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?
Which of the following statements is TRUE regarding how fraud examiners should exercise professional skepticism during a fraud examination engagement?A . Professional skepticism means beginning all assignments with the belief that something is amiss. B. Professional skepticism involves maintaining a mindset that no fraud has occurred C. Fraud examiners should...
Which of the following is NOT a responsibility of the organization's board of directors?
Which of the following is NOT a responsibility of the organization's board of directors?A . Serving as the intermediaries between shareholders and management B. Acting as guardians of the organization's resources and assets C. Directing employees to execute business activities D. Assessing the strategy and underlying purpose of management's decisions...
The objective of anti-fraud controls is to:
The objective of anti-fraud controls is to:A . Completely eliminate inherent fraud risk. B. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk. C. Completely eliminate residual fraud risk D. Reduce the residual fraud risk to a level that is significantly smaller...
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:
Management at ABC Corp. is assessing the company's ethical tone and how it affects the organization's fraud risk. To most effectively reinforce an anti-fraud culture, management should:A . Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place B....
According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?
Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition...
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:
According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:A . The continued pressures of a culture that rewards affluence and success B. The economy's increased reliance on credit C. The increased constraints of the...
