1 An important fraud risk factor involves management's attitudes toward which of the following? A Customers B Internal controls Profit D Vendors 2 Which of the following is a benefit of having an effective internal auditing staff? A Internal auditors are more independent than external auditors. B Internal auditors have greater credibility than external auditors. Internal auditors have the primary responsibility to prevent fraud. D The presence of internal auditors can deter fraud. 3 Perini Corporation-which did not lock up its checks after being encouraged to do so by its outside auditors- became a victim to fraud primarily because of which of the following? The failure to correct a known and reportable condition B Management's overriding of essential internal controls The lack of an active audit committee D The unethical nature of its employees