Fraud Prevention - Question Set
questions with verified solutions already
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Proactive audit procedures, such as fraud assessment questioning and surprise audits, can help
demonstrate management's intention to aggressively seek out fraud. - correct answer ✔✔True
Having an auditor ask employees questions such as "Has anyone ever asked you to do anything
that you felt was illegal or unethical?" can be an effective method of uncovering fraud within an
organization. - correct answer ✔✔True
A detailed anti-fraud policy can give management legal grounds to investigate and punish
violators. - correct answer ✔✔True
Which of the following is an effective method of increasing the perception of detection? -
correct answer ✔✔- Conducting surprise audits.
- Forcing employees to take vacation time.
- Requiring strong management oversight.
Which of the following should be covered in employee anti-fraud training? - correct answer
✔✔Examples of past transgressions and how they were handled.
A detailed anti-fraud policy should outline the types of actions that are considered to be fraud.
Which of the following should be included on that list? - correct answer ✔✔- Forging or altering
documents.
- Personal use of company equipment.
- Disclosing proprietary information to competitor
, Managers and executives should be expected to be fully aware of fraud risks and controls and
should therefore be exempt from the organization's fraud awareness training initiatives. -
correct answer ✔✔False
The way that management handles incidents of fraud within the organization plays an
important role in its fraud prevention program. - correct answer ✔✔True
Two selling points of a fraud prevention program are fraud's potentially negative impact on a
company's profits and its potential effect on the organization's public image. - correct answer
✔✔True
If an action is legal, it is also ethically correct. - correct answer ✔✔False
Which of the following is true regarding an organization's ethics policy? - correct answer ✔✔In
developing the policy, management should consider how various members of the organization
define success.
Of the following, which is the most effective method of preventing fraude - correct answer
✔✔Of the following, which is the most effective method of preventing fraud
Establishing and communicating the proper flow of information to everyone in the organization
is an essential component of a fraud prevention program. - correct answer ✔✔True
Most experts agree that it is much easier to detect fraud than it is to prevent it. - correct answer
✔✔False
Which of the following mechanisms can be used to help increase the perception of detection in
an organization? - correct answer ✔✔- Hotlines.
- Rewards for whistleblowers.
questions with verified solutions already
passed
Proactive audit procedures, such as fraud assessment questioning and surprise audits, can help
demonstrate management's intention to aggressively seek out fraud. - correct answer ✔✔True
Having an auditor ask employees questions such as "Has anyone ever asked you to do anything
that you felt was illegal or unethical?" can be an effective method of uncovering fraud within an
organization. - correct answer ✔✔True
A detailed anti-fraud policy can give management legal grounds to investigate and punish
violators. - correct answer ✔✔True
Which of the following is an effective method of increasing the perception of detection? -
correct answer ✔✔- Conducting surprise audits.
- Forcing employees to take vacation time.
- Requiring strong management oversight.
Which of the following should be covered in employee anti-fraud training? - correct answer
✔✔Examples of past transgressions and how they were handled.
A detailed anti-fraud policy should outline the types of actions that are considered to be fraud.
Which of the following should be included on that list? - correct answer ✔✔- Forging or altering
documents.
- Personal use of company equipment.
- Disclosing proprietary information to competitor
, Managers and executives should be expected to be fully aware of fraud risks and controls and
should therefore be exempt from the organization's fraud awareness training initiatives. -
correct answer ✔✔False
The way that management handles incidents of fraud within the organization plays an
important role in its fraud prevention program. - correct answer ✔✔True
Two selling points of a fraud prevention program are fraud's potentially negative impact on a
company's profits and its potential effect on the organization's public image. - correct answer
✔✔True
If an action is legal, it is also ethically correct. - correct answer ✔✔False
Which of the following is true regarding an organization's ethics policy? - correct answer ✔✔In
developing the policy, management should consider how various members of the organization
define success.
Of the following, which is the most effective method of preventing fraude - correct answer
✔✔Of the following, which is the most effective method of preventing fraud
Establishing and communicating the proper flow of information to everyone in the organization
is an essential component of a fraud prevention program. - correct answer ✔✔True
Most experts agree that it is much easier to detect fraud than it is to prevent it. - correct answer
✔✔False
Which of the following mechanisms can be used to help increase the perception of detection in
an organization? - correct answer ✔✔- Hotlines.
- Rewards for whistleblowers.
