Question 1

Consistently punishing perpetrators can be an effective fraud prevention mechanism

Options :

A : True

B : False

Answer: A

Question 2

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 3

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines____________ as

"a process, effected by an entity's board of directors, management, andother personnel, designed to provide

reasonable assurance regarding the achievement of objectives relating to operations, reporting, and

compliance."

Options :

A : Corporate compliance

B : Fraud risk management

C : Risk assessment

D : Internal control

Answer: D

Question 4

According to Steve Albrecht's research,______is the most common personal characteristic motivating fraudsters, and ________ is the most common organization-environment factor motivating fraudsters.

Options :

A : High personal debt; lack of separation of duties

B : Revenge: too much trust in key employees

C : Living beyond their means, too much trust in key employees

D : Desire for recognition, lack of separation of duties

Answer: C

Question 5

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