A. Espionage by competitors

B. Reporting revenue in the wrong accounting period

C. Fraudulent customer payments

D. Payment of bribes to procure business

A. Be presented by organizational executives or anti-fraud professionals only.

B. Include descriptions of the procedures that management uses to detect fraud.

C. Include examples of prior employee misconduct and how those situations were handled.

D. Be restricted to formal educational mechanisms to reinforce the importance of the message.

A. False

B. True

A. Men and women commit similar amounts of occupational fraud.

B. Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

C. Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.

D. Most employees who commit occupational fraud are first-time offenders.

A. False

B. True

A. Include her disagreements with Pierre as a factor when assessing the risk of fraud in the sales function.

B. Confront Pierre about the disagreements and discuss how they increase the company's risk of fraud.

C. Request that someone else perform the fraud risk assessment work that is related to the sales function's activities.

D. Automatically designate the sales function as a high-risk area.

A. Formal sanctions for intentional noncompliance should be determined and enacted privately

B. A specific individual or team should be designated as responsible for monitoring compliance with the program

C. The punishment for intentional noncompliance should be carried out in a consistent and firm manner.

D. The program must include mechanisms to address breaches in compliance.

A. Implementing the fraud risk management program

B. Punishing fraud perpetrators discovered through fraud risk management activities

C. Overseeing the organization's fraud risk management activities

D. Designing the fraud risk management program

A. Establishing loosely defined job descriptions that allow employees flexibility in their roles

B. Including ethics-based metrics as a component of performance evaluations

C. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks

D. Tying employee compensation to reasonable organizational performance goals

A. Guidance regarding appropriate board structures, responsibilities, and procedures

B. An examination of the importance of effectively designed and implemented internal control mechanisms within an organization

C. A call to support the equal treatment of all members of an organization's governing body

D. A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices

A. Fraud risks remain constant over time

B. Regulations prohibit reassessment

C. Business processes, personnel, and risks change over time

D. External audits eliminate the need for updates

A. The availability of suitable targets

B. The lack of accountability for misdeeds

C. The presence of motivated offenders

D. The absence of capable guardians

A. Prevention

B. Compliance

C. Deterrence

D. Enforcement

A. Risks to the organization's reputation

B. The possibility of management's override of controls

C. The organization's incentive programs

D. All of the above