A.  

The presence of motivated offenders

B.  

The lack of accountability for misdeeds

C.  

The absence of capable guardians

D.  

The availability of suitable targets

A.  

Flowcharts displaying departmental structures can be a helpful tool in communicating the proper flow of information as part of fraud prevention efforts.

B.  

Communicating the proper flow of information to everyone in the organization can increase the organization ' s vulnerability to fraud.

C.  

It is best to avoid formally documenting organizational structures to limit fraudsters ' ability to circumvent oversight controls.

D.  

A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.

A.  

Includes examples of how fraud hurts Mega Corp. and its employees.

B.  

Is limited to the organization’s executives and focuses on their liability for fraud.

C.  

Is restricted to informal educational mechanisms such as company-wide newsletters.

D.  

Describes the specific internal controls that Mega Corp. uses to detect fraud.

A.  

An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

B.  

Subordination of desires for personal gain to the interests of clients, employers, and the public

C.  

Independence of mental attitude

D.  

Avoidance of differences of opinion

A.  

Lori accepts an assignment to infiltrate her employer and transmit inside information to a competitor.

B.  

Ren undertakes an external engagement that requires him to work outside the normal work hours of his primary employer.

C.  

DeVon undertakes engagements for both sides in a case of an alleged fraudulent warranty scheme.

D.  

Karen accepts an assignment to search for fraud indicators at an organization in which she is an undisclosed partner.

A.  

Green a CFE, uncovered several material internal control deficiencies unrelated to the financial statement fraud he was investigating. In his final report to management. Green included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

B.  

Stephanie, a CFE, accepted a fraud examination assignment and then instructed a lower-level employee to assess the company ' s cash records for signs of fraud. She took his word when he said there was no evidence of wrongdoing and ended up failing to uncover a very costly fraud scheme.

C.  

Susan, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss A year later, she received a legal order from the local prosecutor ' s office to provide the client ' s file. Susan complied with the court order, even though she did not have the client ' s authorization to do so.

D.  

All of the above are violations

A.  

Strong intervention of the government

B.  

Voluntary changes in corporate attitudes and structure

C.  

Consumer action to force change

D.  

Media blacklisting of the organization

A.  

When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.

B.  

At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.

C.  

Where permitted by law, management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

D.  

As part of the screening process, management should contact the references provided by the job candidate.

A.  

The assessment team should consider how employees behave as part of Its assessment

B.  

The assessment should be used to improve employee fraud awareness.

C.  

The designation of an area as being high risk does not conclusively mean that fraud is occurring there.

D.  

The objective of the assessment is to provide an estimate of the organization ' s fraud losses.

A.  

Fraud risk management monitoring activities.

B.  

Fraud risk assessment.

C.  

Fraud investigation and corrective action.

D.  

Fraud control activities.

A.  

Adding ghost employees to payroll.

B.  

Embezzling incoming customer payments.

C.  

Collusion between contractors.

D.  

Reporting revenue in the wrong period.

A.  

Emphasizing to all employees that the company maintains a policy of zero tolerance for fraud.

B.  

Keeping all known incidents of fraud private to protect the identities of parties involved.

C.  

Maintaining a policy that allows employees one warning before they are terminated for committing fraud

D.  

Punishing frauds only if they have a significant financial impact.

A.  

Rewards are given to employees who challenge the status quo

B.  

Management encourages employee loyalty through social functions

C.  

Management separates employee performance goals from company performance goals

D.  

All of the above

A.  

Assess the significance of each inherent fraud risk to the organization.

B.  

Identify and reward the people and departments that are least likely to commit fraud.

C.  

Determine the ideal number of fraud response protocols that the organization should implement.

D.  

Solicit stakeholder input to quantify the organization’s greatest fraud risks and total fraud losses.

A.  

The Principles are required to be implemented by all corporations in the jurisdictions that have officially adopted them

B.  

The Principles state that an entity ' s corporate governance framework should discourage active cooperation between corporations and stakeholders in creating wealth.

C.  

The Principles are intended to be applicable in developed economies but not in emerging markets.

D.  

The Principles state that an entity ' s corporate governance framework should ensure the equitable treatment of all shareholders.

A.  

The size of the team should vary based on organization size and the methods used to conduct the assessment.

B.  

Team members should all have similar skills and perspectives.

C.  

The team should include only external sources.

D.  

The team should exclude operations personnel and members of the legal department for independence purposes.

A.  

Transparency

B.  

Responsibility

C.  

Fairness

D.  

Accountability

A.  

Beezie ' s conduct would be a violation of the ACFE Code of Professional Ethics.

B.  

Beezie ' s conduct would not be a violation of the ACFE Code of Professional Ethics.

C.  

Beezie ' s conduct would be a violation of the ACFE Code of Professional Ethics only if she also violated the law.

D.  

Beezie ' s conduct would be a violation of the ACFE Code of Professional Ethics only if she did not find the fraudster.

A.  

Executive failures

B.  

Excessive regulatory requirements

C.  

Profit pressure

D.  

Unethical corporate culture

A.  

The internal audit function should wait until issues related to fraud occur before communicating with senior management or the board of directors about the topic.

B.  

The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors to maintain independence.

C.  

The internal audit function should avoid communicating with the board of directors about fraud because that is solely the responsibility of the legal function.

D.  

The internal audit function should discuss management’s level of cooperation with the assessment of the organization’s fraud risk management in its report to the board of directors.

A.  

Give shareholders oversight of hotline reporting programs

B.  

Have adequate compensation committee resources and authority

C.  

Develop a written charter for management

D.  

Have a mandatory independent audit committee

A.  

Perceived non-shareable financial need

B.  

Rationalization

C.  

Perceived opportunity

D.  

Lack of personal Integrity

A.  

A mandatory independent compensation committee

B.  

Shareholder oversight of internal controls

C.  

A written charter for management

D.  

Adequate audit committee resources and authority

A.  

Begin the engagement with the belief that no fraud has occurred.

B.  

Maintain a skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.

C.  

Maintain professional skepticism that can only be dispelled by evidence.

D.  

Form the engagement hypothesis without consideration for the nature of the assignment.

A.  

The organization ' s cultural environment

B.  

The organization ' s legal and regulatory environment

C.  

The organization ' s physical operating environment

D.  

The organization ' s ethical environment

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.  

The communication should be visibly disseminated throughout the business

D.  

All of the above

A.  

Confront Brandon about the disagreements and discuss how they increase the organization ' s risk of fraud-

B.  

Have someone else perform the fraud risk assessment work related to the purchasing function

C.  

Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.

D.  

Automatically designate the purchasing function as a high-risk area.

A.  

Tasha should begin the engagement with the belief that fraud has occurred.

B.  

Tasha should form her engagement hypothesis before referring to any preliminary information that is available to maintain objectivity.

C.  

Tasha should maintain her skeptical attitude throughout the entire engagement even if the evidence shows no signs of fraudulent activity.

D.  

Tasha should maintain a mindset that fraud has not occurred until she finds conclusive evidence.

A.  

Analytical review of BKY ' s financial statements is the best way to uncover small frauds that might be missed by other detection methods.

B.  

Fraud audit procedures should be designed to avoid an element of surprise.

C.  

Auditors should avoid asking questions such as, " Has anyone ever asked you to do something unethical? " as part of their audits, as this can limit employees ' willingness to communicate.

D.  

Fraud assessment questioning techniques are most effectively used as part of the normal audit process.

A.  

Tell the nonprofit ' s board of trustees about Charles

B.  

Report Charles to law enforcement

C.  

Not disclose the information about Charles.

D.  

Resign from the engagement.

A.  

Environmental stressors.

B.  

Social learning.

C.  

Lack of advancement.

D.  

Pressure and strain.

A.  

The assessment team would like to provide a means for anonymous suggestions or responses to questions.

B.  

The assessment team wants to observe employees as they collectively discuss the organization’s fraud awareness training.

C.  

The assessment team would like to obtain responses through a formal electronic questionnaire.

D.  

The assessment team wants to receive candid one-on-one feedback from employees in a private setting.

A.  

A process implemented to review how well the organization’s risk management capabilities have increased value over time and how they will continue to drive value for the organization.

B.  

A process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

C.  

A process involving personnel at all levels of the organization that aims to eliminate all uncertainty and risk while also ensuring the effectiveness of the organization’s strategy.

D.  

A process aimed at proactively identifying, evaluating, and addressing an organization’s vulnerabilities to fraud by both internal and external sources.

A.  

True

B.  

False

A.  

Tell White that she will try to keep the information as confidential as possible

B.  

Agree that the information will be held in confidence, even though Blue knows it will not be

C.  

Take White ' s request straight to ABC Corp. ' s management

D.  

Not agree to the request for confidentiality

A.  

The fraud risk assessment is most effective when management’s influence on the process is limited.

B.  

Conducting an effective fraud risk assessment requires thinking like a fraudster.

C.  

If the individuals conducting the fraud risk assessment believe that fraud could not happen at the organization, then the assessment process should reflect that belief.

D.  

To ensure the independence of the team members, a consultant or another external party must conduct the fraud risk assessment.

A.  

Proactively identifying fraud risks

B.  

Limiting the damage caused by fraud occurrences

C.  

Punishing fraud perpetrators

D.  

All of the above

A.  

Formal sanctions for intentional noncompliance should be kept private and only shared if a party absolutely needs to know.

B.  

All employees at the organization should be responsible for monitoring compliance with the program.

C.  

Punishment for intentional noncompliance should be individualized based on the offender ' s personal circumstances.

D.  

Systems to monitor and identify breaches in compliance must be included in the fraud risk management program.

A.  

True

B.  

False

A.  

Collusion.

B.  

Noncompliance.

C.  

Breakdown.

D.  

Error.

A.  

The program is structured and comprehensive.

B.  

The program is based upon the best available information.

C.  

The program is integrated into only high-risk organizational activities.

D.  

The program is customized and proportionate to the organization ' s operations and objectives.

A.  

A requirement for a corporate governance framework that protects the exercise of management’s rights.

B.  

Support for the equal treatment of all members of an organization’s governing body.

C.  

A request that governments implement effective internal controls to support good corporate governance practices.

D.  

An emphasis on the importance of timely, accurate and transparent disclosure mechanisms.

A.  

The organization’s total number of customers.

B.  

The organization’s technical infrastructure.

C.  

The organization’s legal and regulatory environment.

D.  

The organization’s physical operating environment.

A.  

They are required to be implemented by all corporations in the jurisdictions that have officially adopted them.

B.  

They state that a corporate governance framework should require disclosure of all financial information to the organization’s investors.

C.  

They assert that a corporate governance framework should ensure the equitable treatment of all the organization’s shareholders.

D.  

They are intended to be applicable in developed economies but not in emerging markets.

A.  

Sill should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination.

B.  

Sill should consider A & P’s expected purchasing pattern and method of payment in determining whether to accept the transaction.

C.  

Sill does not need to undertake any specific due diligence procedures for this transaction.

D.  

Sill needs to undertake due diligence procedures only if A & P requests to pay on credit.

A.  

Receipt of kickbacks

B.  

Espionage by competitors

C.  

Payment of bribes

D.  

Aiding and abetting vendor fraud

A.  

Transparency

B.  

Fairness

C.  

Responsibility

D.  

Accountability

A.  

True

B.  

False

A.  

A process aimed at proactively identifying, assessing, and managing an organization ' s vulnerabilities to fraud by both internal and external sources.

B.  

The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization ' s direction, operations, and performance.

C.  

The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.

D.  

A process, effected by an entity ' s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.

A.  

Assign oversight of the hotline reporting program to company shareholders

B.  

Have a mandatory independent finance committee

C.  

Provide adequate resources and authority to the internal audit function

D.  

Develop a written charter for the audit committee

A.  

Interviews

B.  

Focus groups

C.  

Anonymous feedback mechanisms

D.  

Surveys

A.  

Fraud examiners.

B.  

General counsel.

C.  

Human resources.

D.  

Management.

A.  

A sales manager using a corporate credit card for personal expenses

B.  

Management of several pharmaceutical companies engaging in a price fixing scheme

C.  

An insurance claims agent conspiring with customers to file false insurance claims and share the proceeds

D.  

An HR employee adding a ghost employee to the payroll and misappropriating the paychecks

A.  

Overseeing the organization ' s fraud risk management activities.

B.  

Monitoring and proactively improving the fraud risk management program.

C.  

Performing and regularly updating the fraud risk assessment.

D.  

Implementing the fraud risk management program throughout the organization.

A.  

Control activities

B.  

Ethical culture

C.  

Risk assessment

D.  

Monitoring

A.  

The occurrence of financial crime at an organization often results in a decrease in employee productivity due to concerns about job security.

B.  

The damage that financial crime causes to an organization’s reputation usually results in a measurable direct cost to the organization and its financial well-being.

C.  

The discovery of financial crime at an organization often leads to increased public confidence in the organization due to its effective detection measures.

D.  

The existence of financial crime at an organization usually leads to individuals making additional investments in the company due to low stock prices.

A.  

Serving as the intermediaries between shareholders and management

B.  

Acting as guardians of the organization ' s resources and assets

C.  

Directing employees to execute business activities

D.  

Assessing the strategy and underlying purpose of management ' s decisions and actions

A.  

Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.

B.  

Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.

C.  

Implementing proactive fraud audit procedures demonstrates the organization ' s intention to aggressively look for possible fraudulent conduct.

D.  

Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud

A.  

Communicating the expectations of those governing the fraud risk management program

B.  

Performing comprehensive fraud risk assessments to identify specific fraud schemes

C.  

Deploying preventive and detective fraud control activities to mitigate fraud risk

D.  

Developing one-time evaluations for each fraud risk management principle

A.  

A code offers fewer and less direct solutions to professional ethical dilemmas than might exist under general ethical principles.

B.  

A code acts as a substitute for legal and regulatory requirements that apply to the profession.

C.  

A code provides answers to all ethical dilemmas that the organization ' s members might encounter.

D.  

A code facilitates practical enforcement and internal discipline throughout a profession.

A.  

Employees are encouraged to develop professional skills that can be applied in other positions.

B.  

Management frequently transfers employees to new roles and requires long working hours.

C.  

Management separates employee performance goals from company performance goals.

D.  

Employees do not feel a sense of long-term loyalty due to the lack of a retirement plan and employee benefits.

A.  

The behavior will return when punishment ceases

B.  

The behavior will be permanently suppressed

C.  

The behavior will occur more frequently.

D.  

The behavior will not be affected by the punishment

A.  

increase in the occurrence of the undesired behavior

B.  

No effect on the occurrence of the undesired behavior

C.  

Temporary suppression of the undesired behavior

D.  

Permanent suppression of the undesired behavior

A.  

True

B.  

False

A.  

Reflect the assessment team ' s subjective perspective regarding the risks identified.

B.  

Contain a detailed, comprehensive list of every assessment finding.

C.  

Focus on the findings that will make the most impact on the company ' s fraud risk management efforts.

D.  

Include a complete list of recommended actions for management to take to address all identified risks.

A.  

Positive reinforcement

B.  

Negative reinforcement

C.  

Punishment

D.  

None of the above

A.  

Baldwin asking for guidance from his family and friends.

B.  

Baldwin reviewing the ACFE Code of Professional Ethics.

C.  

Baldwin contemplating philosophical principles related to ethics.

D.  

Baldwin reading the applicable contract law.

A.  

True

B.  

False

A.  

Controls are not effective in preventing theft and fraud If those at risk do not know of their presence

B.  

Most experts agree that it is harder to detect frauds than to prevent them

C.  

Educating employees about company hotlines and reporting programs increases their perception of detection

D.  

Conducting covert audits is among the most effective fraud prevention methods

A.  

Saskia should provide a written communication about her findings to the relevant regulatory agencies.

B.  

Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.

C.  

Saskia should communicate the deficiencies in writing to those charged with governance.

D.  

Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.

A.  

A call to support the equal treatment of all members of an organization’s governing body

B.  

A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices

C.  

Guidance regarding appropriate board structures, responsibilities, and procedures

D.  

An examination of the importance of effectively designed and implemented internal control mechanisms within an organization

A.  

Hiring policies and procedures

B.  

Independent reconciliations

C.  

Separation of duties

D.  

Fraud awareness training

A.  

Conditioning theory

B.  

Routine activities theory

C.  

Rational choice theory

D.  

Social control theory

A.  

The auditors should reconsider the reliability of the audit evidence they have previously obtained.

B.  

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

C.  

The auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.

D.  

The auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

A.  

The organization ' s incentive programs

B.  

The possibility of management ' s override of controls

C.  

Risks to the organization ' s reputation

D.  

All of the above

A.  

Overseeing the organization ' s fraud risk management activities

B.  

Designing the fraud risk management program

C.  

Punishing fraud perpetrators discovered through fraud risk management activities

D.  

Implementing the fraud risk management program

A.  

Gian must ensure that the company ' s investment in the fraud risk management program outweighs the benefit of those controls.

B.  

When expressing the organization ' s risk appetite, Gian should do so without regard to the company ' s culture or operations.

C.  

Gian must assign both a quantitative and qualitative measure to the company ' s risk appetite to accurately measure the program ' s effectiveness.

D.  

Gian should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.

A.  

The objective of anti-fraud controls is to completely eliminate inherent fraud risks within the organization.

B.  

Inherent fraud risks are risks that remain after controls are implemented to mitigate fraud risk.

C.  

The objective of anti-fraud controls is to reduce the residual fraud risk to a level that is significantly lower than the inherent fraud risk.

D.  

Residual fraud risks are risks that are present before anti-fraud controls are implemented across the organization.

A.  

True

B.  

False

A.  

Cedric should keep the communication private and share it only with XYZ’s board of directors.

B.  

Cedric’s communication should be sent from James’s email address.

C.  

Cedric should send a generic communication to the entire staff.

D.  

Cedric’s communication should be vague to avoid giving away specifics about the fraud risk assessment process.

A.  

Discontinuing the underlying activity completely

B.  

Deciding not to implement any responsive measures

C.  

Purchasing fidelity insurance to protect against the associated risk of loss

D.  

Implementing additional internal control measures

A.  

Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.

B.  

Require senior leaders to follow the same ethics policies that are in place for all staff-level employees.

C.  

Discourage employees from questioning their immediate supervisor ' s actions or decisions if they have concerns.

D.  

Discipline any employees who publicly express their frustration regarding organizational policies.

A.  

Withdrawal of financial institution funding

B.  

Strong intervention of the government

C.  

Consumer action to force change

D.  

Voluntary changes in corporate attitudes and structure

A.  

A confused organizational structure makes it harder for a fraudster to perpetrate and conceal their misdeeds.

B.  

Effectively documenting and communicating the organizational structure to all employees can help prevent fraud.

C.  

Formally establishing and communicating the proper flow of information in an organization can hinder its fraud prevention initiatives.

D.  

Displaying organizational and departmental hierarchies can help fraudsters select their targets.

A.  

Peter should make a public announcement that he is withdrawing from the audit engagement.

B.  

Peter should provide a written communication about the findings to those charged with governance.

C.  

Peter should report the findings in writing directly to the appropriate regulatory agencies

D.  

Peter should discreetly work with senior management to correct the underlying internal control deficiencies.

A.  

Positive reinforcement

B.  

Loss of reward

C.  

Punishment

D.  

Negative stimuli

A.  

Undertaking an engagement that decreases the fraud examiner ' s ability to perform their duties for their full-time employer

B.  

Accepting an assignment to assess red flags of fraud at an organization in which the fraud examiner is a partner, provided the fraud examiner ' s ownership interest is disclosed

C.  

Undertaking engagements for both sides in a case of an alleged product substitution scheme

D.  

Accepting an assignment to secretly infiltrate the fraud examiner ' s employing organization and transmit inside information to another party

A.  

Management should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented tnem.

B.  

Management must balance the investment in anti-fraud controls with the benefit of those controls and the amount of risk it is willing to accept.

C.  

Management must assign a quantitative measure to its risk appetite so that it can accurately measure the fraud risk management program’s effectiveness.

D.  

Management should tailor the detailed objectives of the fraud risk management program to the organization ' s specific needs and goals.

A.  

Acme is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

B.  

Acme is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions.

C.  

Acme must comply with all corporate governance-related legislation in every jurisdiction in which it operates.

D.  

Acme is required to comply only with the corporate governance standards adopted by the company’s board of directors.

A.  

The ACFE Code of Professional Ethics allows Rhys to comply with management ' s request without limitations.

B.  

The ACFE Code of Professional Ethics allows Rhys to comply with management ' s request only if he can find another CFE to co-sign his report.

C.  

The ACFE Code of Professional Ethics allows Rhys to comply with management ' s request only if the company has liability insurance to cover an incorrect assertion.

D.  

The ACFE Code of Professional Ethics absolutely prohibits Rhys from complying with management ' s request.

A.  

It reduces the risk of fraud but does not completely eliminate it.

B.  

It prioritizes implementing preventive controls over detective controls.

C.  

It focuses more on detective controls than preventive controls.

D.  

It decreases a potential fraudster’s belief that misbehavior will be detected.

A.  

A retail clerk colluding with a friend to commit a scheme involving fraudulent returns.

B.  

An inventory manager taking home the company ' s product to sell privately.

C.  

An agreement between all the local floral companies to unnecessarily raise prices.

D.  

An accountant uses company funds to pay personal credit card charges.

A.  

Fraud risk governance

B.  

Fraud control activities

C.  

Fraud risk management monitoring activities

D.  

Fraud investigation and corrective action

A.  

The assessment team would like to observe the interactions of several employees discussing the organization’s current fraud awareness training.

B.  

The assessment team would like to get candid one-on-one feedback from employees in a private setting.

C.  

The assessment team would like to provide a means for anonymous employee suggestions or responses to questions posed.

D.  

The assessment team would like to obtain individuals’ responses through a formal electronic questionnaire.

A.  

True

B.  

False

A.  

An organization should avoid revealing that it is seeking information about potential vendors prior to starting its relationship with them.

B.  

An organization should perform audits of potential vendors before agreeing to conduct business with them.

C.  

An organization should request that new vendors complete a questionnaire about their background immediately after signing a contract with them.

D.  

An organization should ensure that vendors have their own ethics and compliance program before engaging in any transactions with them.

A.  

A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices

B.  

A call to support the equal treatment of all members of an organization ' s governing body

C.  

Guidance regarding appropriate board structures, responsibilities, and procedures

D.  

An examination of the importance of effectively designed and implemented internal control mechanisms within an organization

A.  

Complaints about family problems is the most reported behavioral red flag displayed by fraud perpetrators.

B.  

Men and women commit similar amounts of occupational fraud.

C.  

Most employees who commit occupational fraud are first-time offenders.

D.  

Frauds committed by staff-level employees cause higher median losses than those committed by owners and executives.

A.  

True

B.  

False