Question 1

Which of the following Is TRUE regarding an organization's ethics program?

Options :

A :

To be most effective, access to the organization's ethics policy should be restricted to employees and other Internal parties only

B :

In designing the ethics program, management should consider whether the organization currently has any ethical leadership Issues

C :

An effective written ethics policy alone is sufficient to communicate management's ethical philosophy and serve as a comprehensive ethics program

D : All of the above

Answer: B

Question 2

Consistently punishing perpetrators can be an effective fraud prevention mechanism

Options :

A : True

B : False

Answer: A

Question 3

Which of the following is LEAST LIKELY to be a factor that directors and management should consider when developing a corporate governance framework for an organization?

Options :

A : The organization's cultural environment

B : The organization's legal and regulatory environment

C : The organization's physical operating environment

D : The organization's ethical environment

Answer: C

Question 4

Which of the following Is NOT Included In Ihe five fraud risk management principles described In Fraud Risk Management Guide, a joint publication by COSO and the ACFE?

Options :

A : Communicating the expectations of those governing the fraud risk management program

B : Performing comprehensive fraud risk assessments to identify specific fraud schemes

C : Deploying preventive and detective fraud control activities to mitigate fraud risk

D : Developing one-time evaluations for each fraud risk management principle

Answer: D

Question 5

How does writing off obsolete inventories affect a company's financial statements?

Options :

A : Stock increases

B : Stock decreases

C : Profit increases

D : Profit decreases

E : 1 and 3 only

F : 1 and 4 only

G : 2 and 3 only

H : 2 and 4 only

Answer: G