An enlightened management team can decrease the probability of fraud in the company best by:

Multiple Choice

Measuring performance and awarding bonuses on the basis of short-term operating results.

Providing employees performance feedback that stresses negative observations on their work to increase performance.

Restricting authority for profit objective determination to top management.

Establishing work teams that share responsibilities, performance, and bonuses based on collective efforts.

2. Which of the following statements is correct with respect to the elements of the fraud triangle?

Multiple Choice

Fraud is most common when motive and lack of integrity exist together.

Fraud it most common when motive, opportunity and rationalization all occur together.

Motive refers to a situation that allows someone with opportunity to carry out fraud.

Opportunity is a cause that pressures people into action.