Question 1

Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

Options :

A : Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.

B : The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.

C : Security cameras that monitor cash handling at the register are not functioning.

D : The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.

Answer: B

Question 2

Which of the following is an example of a physical security control that should be in place at an organization's data center?

Options :

A : Backup servers in the data center are stored in an environmentally controlled location

B : All users have a unique ID and password to access data

C : Swipe cards are used to access the data center

D : Firewalls and antivirus protection are in place to prevent unauthorized access to data.

Answer: C

Question 3

The first stage in the development of a crisis management program is to:

Options :

A : Formulate contingency plans.

B : Conduct a risk analysis.

C : Create a crisis management team.

D : Practice the response to a crisis.

Answer: B

Question 4

Which of the following is most likely to function as a directive control?

Options :

A : Security dogs.

B : Alert employees.

C : Insurance claims.

D : Cycle counts.

Answer: B

Question 5

Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?

Options :

A : Decentralized organizations are more focused on organizational goals.

B : Decentralized organizations streamline organizational structure.

C : Decentralized organizations tend to be less expensive to operate.

D : Decentralized organizations tend to be more responsive to market changes.

Answer: D