FRAUD PREVENTION - Fraud Prevention
Programs well answered to pass
Which of the following factors complicates the ability of determining clear ethical rights and
wrongs?
A. Moral standards and accepted social behavior change over time
B. Different groups within the same society might have conflicting ideas of right and wrong
C. Tension often exists between personal standards and organizational needs
D. All of the above - correct answer ✔✔D. All of the above
T or F: 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
T or F: Most experts agree that it is much easier to detect fraud than it is to prevent it. - correct
answer ✔✔False
T or F: 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
T or F: 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
T or F: Managers should be instructed to observe employees' lifestyles for warning signs of
fraud, and employees should know that supervisors are watching for unexplained or suspicious
anomalies of this nature. - correct answer ✔✔True
, T or F: 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
Which of the following is TRUE regarding an organization's ethics policy?
A. Access to the policy should be restricted to company employees only.
B. In developing the policy, management should consider how various members of the
organization define success.
C. In developing the policy, management should not consider the existing ethical tone set by
leadership.
D. Access to the policy should be restricted to external parties only. - correct answer ✔✔B. In
developing the policy, management should consider how various members of the organization
define success.
Components necessary to develop, implement, and manage a comprehensive ethics program
include:
A. Sanctions for unethical behavior
B. A vision statement
C. A designated ethics official
D. All of the above - correct answer ✔✔D. All of the above
T or F: A detailed anti-fraud policy can give management legal grounds to investigate and punish
violators. - correct answer ✔✔True
T or F: Unless specific unacceptable conduct is detailed in an anti-fraud policy, there can be legal
problems in discharging a dishonest employee. - correct answer ✔✔True
Which of the following should be covered in employee anti-fraud training?
Programs well answered to pass
Which of the following factors complicates the ability of determining clear ethical rights and
wrongs?
A. Moral standards and accepted social behavior change over time
B. Different groups within the same society might have conflicting ideas of right and wrong
C. Tension often exists between personal standards and organizational needs
D. All of the above - correct answer ✔✔D. All of the above
T or F: 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
T or F: Most experts agree that it is much easier to detect fraud than it is to prevent it. - correct
answer ✔✔False
T or F: 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
T or F: 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
T or F: Managers should be instructed to observe employees' lifestyles for warning signs of
fraud, and employees should know that supervisors are watching for unexplained or suspicious
anomalies of this nature. - correct answer ✔✔True
, T or F: 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
Which of the following is TRUE regarding an organization's ethics policy?
A. Access to the policy should be restricted to company employees only.
B. In developing the policy, management should consider how various members of the
organization define success.
C. In developing the policy, management should not consider the existing ethical tone set by
leadership.
D. Access to the policy should be restricted to external parties only. - correct answer ✔✔B. In
developing the policy, management should consider how various members of the organization
define success.
Components necessary to develop, implement, and manage a comprehensive ethics program
include:
A. Sanctions for unethical behavior
B. A vision statement
C. A designated ethics official
D. All of the above - correct answer ✔✔D. All of the above
T or F: A detailed anti-fraud policy can give management legal grounds to investigate and punish
violators. - correct answer ✔✔True
T or F: Unless specific unacceptable conduct is detailed in an anti-fraud policy, there can be legal
problems in discharging a dishonest employee. - correct answer ✔✔True
Which of the following should be covered in employee anti-fraud training?
