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NEW QUESTION 28
In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:
- A. The possibility of management's override of controls
- B. The organization's incentive programs
- C. Risks to the organization's reputation
- D. All of the above
Answer: D
NEW QUESTION 29
Which of the following is TRUE regarding the communication of the fraud risk assessment process?
- A. The more personalized the communication, the more effective it will be in encouraging employees to participate
- B. The communication should be made in a format mat is most appropriate for the culture of the organization
- C. All of the above
- D. The communication should be visibly disseminated throughout the business
Answer: C
NEW QUESTION 30
Management at ABC Corp. is assessing the company s ethical tone and how it affects the organization s fraud risk. To most effectively reinforce an anti-fraud culture, management should
- A. Create an environment in which employees feel safe challenging managements decisions
- B. Implement two separate sets of ethics policies one for management and one for employees
- C. All of the above
- D. Use a checklist of initiatives to make sure all the elements of a strong tone at the top are in place
Answer: C
NEW QUESTION 31
Fraud risks related to regulatory and legal misconduct include all of the following EXCEPT:
- A. Anti-competitive practices
- B. Insider trading
- C. Conflicts of interest
- D. Fraudulent customer payments
Answer: C
NEW QUESTION 32
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