(Multiple choice)
1. People will often be dishonest if they are placed in an environment of:
a. Poor controls.
b. High pressure.
c. Low integrity.
d. Loose accountability.
e. All of the above.

2. Which of the following factors contribute to creating a corporate culture of honesty and openness?
a. Hiring honest people.
b. Performing criminal background checks.
c. Not having an open-door policy.
d. Having a well-understood and respected code of ethics.
e. Both a and d.
f. All of the above.

3. Which of the following personnel and operating policies contribute to high-fraud environments?
a. Management by crisis.
b. Rigid rules.
c. High employee lifestyle expectations.
d. Poor promotion opportunities.
e. All of the above.

4. The single most effective tool in preventing and detecting fraud is usually:
a. Monitoring employees.
b. Having a good system of internal controls.
c. Having a well-written company code of ethics.
d. Following strict hiring procedures.


5. A company’s control environment includes:
a. The tone that management establishes toward what is honest and acceptable behavior.
b. Corporate hiring practices.
c. Having an internal audit department.
d. All of the above.

6. Which of the following factors generally results in
a high-fraud environment?
a. Hiring honest people.
b. Providing an EAP.
c. Autocratic management.
d. Both a and b.