pick the right answer with an explanation

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 companys 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.

7. Which of the following aspects of fraud usually results in the largest savings?

a. Fraud prevention.

b. Fraud detection.

c. Fraud investigation.

d. It is impossible to tell.

8. Which of the following is usually the most effective tool in preventing and detecting fraud?

a. Discouraging collusion between employees and customers or vendors.

b. Effective investigations of fraud symptoms.

c. Having a good system of internal controls.

d. Creating an expectation of punishment in the company.

9. Which of the following is the typical fraud model that describes most firms?

a. Fraud incident, assessing risk, investigation, reporting.

b. Fraud incident, investigation, action, resolution.

c. Assessing risk, fraud incident, investigation, resolution.

d. Assessing risk, investigation, implementing a fraud program, reporting.

10. The tone at the top is an important element infighting fraud, which involves:

a. Doing a good job of integrity risk assessment.

b. Having a positive organization where effective fraud teaching and training is conducted.

c. Setting a proper example or modeling appropriate management behavior.

d. Both b and c.

11. Which of the following is not a recognized method of eliminating fraud opportunities?

a. Having good internal controls.

b. Monitoring employees.

c. Creating an expectation of punishment.

d. Engendering employee goodwill by having lax rules.

12. Which of the following is not a reason identified by Deloitte why whistle-blowing systems fail?

a. Lack of anonymity.

b. Pressure to comply.

c. Culture.

d. Lack of awareness.

13. Alerting vendors and contractors to company policies often results in:

a. Loss of interest in the organization by vendors.

b. Discovery of current frauds and the prevention of future frauds.

c. Strained vendor/purchaser relationships.

d. Heightened incidence of recurrent reverse vendor fraud.