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1. In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.
A) False
B) True
2. Jenny is a highly respected employee at XYZ Corp. Her husband's gambling addiction has caused them to have a significant amount of debt. Jenny begins stealing money from the company to cover her husband's gambling losses. This situation best illustrates which leg of the Fraud Triangle?
A) Perceived non-shareable financial need
B) Perceived opportunity
C) Rationalization
D) Perceived acquiescence
3. Rosie, a Certified Fraud Examiner (CFE), conducted a fraud examination for her company that led to a confession of guilt from Dean. Which of the following statements in Rosie's verbal report to management would violate the ACFE Code of Professional Ethics?
A) "The evidence does not support Dean's confession."
B) "Dean confessed to embezzlement."
C) "Dean is guilty of embezzlement."
D) "Dean's confession is supported by the evidence."
4. According to ACFE research, which of the following is TRUE?
A) Men and women commit similar amounts of occupational frauds.
B) Most employees who commit occupational fraud are first-time offenders.
C) Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.
D) Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.
5. Luis, the internal audit manager for Oak Corporation, is working to formally incorporate the company's fraud risk assessment into its audit process. Which of the following is NOT a way that Oak's audit team should use the fraud risk assessment process and results as part of their audits?
A) To inform the development of audit programs for areas that have been identified as having a high risk of fraud.
B) To design audit tests to evaluate whether fraud risk controls are operating effectively.
C) To validate whether the organization is appropriately managing moderate-to-high fraud risks.
D) To confirm whether there is conclusive evidence that fraud is occurring within the company.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |
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