A.  

Blue should consider Green's expected purchasing pattern and method of payment in determining whether to accept the transaction.

B.  

Blue only needs to undertake due diligence procedures if Green is requesting to pay on credit.

C.  

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

D.  

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

A.  

Demote employees who do not adhere to the expected processes.

B.  

Publicly call out and criticize employees who deviate from the formal processes.

C.  

Offer a bonus to anyone who experiences no process exceptions for ninety days-

D.  

Take away a day of paid time off for each process exception.

A.  

True

B.  

False

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.  

True

B.  

False

A.  

Social control theory

B.  

Operant theory

C.  

Cognitive theory

D.  

Behavioral theory

A.  

Patrick should confront management with his audit findings and try to get a confession.

B.  

Patrick should immediately report his findings to local law enforcement authorities.

C.  

Patrick should not disclose his findings to any other parties due to client confidentiality

D.  

Patrick should report his findings to those charged with governance of the organization.

A.  

Guidance regarding appropriate board structures, responsibilities, and procedures

B.  

Support for establishing stronger protection for foreign shareholders than for domestic shareholders

C.  

A request that governments have in place an appropriate framework to support good corporate governance practices

D.  

Recognition of the importance of the role of stakeholders in corporate governance

A.  

Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

B.  

Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

C.  

Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.

D.  

All of the above are violations.

A.  

Positive reinforcement

B.  

Negative reinforcement

C.  

Punishment

D.  

None of the above

A.  

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

B.  

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

C.  

Accepting an assignment to evaluate the anti-fraud controls at an organization in which the fraud examiner is a shareholder, provided the fraud examiner's ownership interest is disclosed

D.  

Undertaking engagements for both sides in a case of alleged vendor overbilling

A.  

Cultural ties

B.  

Criminal history

C.  

Organizational opportunity

D.  

Social class

A.  

Management seeks out diversity in attitudes and perspectives when hiring employees

B.  

Rewards are given to employees who challenge the status quo

C.  

Management links employee performance goals with company performance goals

D.  

All of the above

A.  

Trustworthiness

B.  

A well-developed sense of moral philosophy

C.  

Avoidance of conflicts of interest

D.  

Refusal to admit errors

A.  

True

B.  

False

A.  

Hiring policies and procedures

B.  

Independent reconciliations

C.  

Separation of duties

D.  

Fraud awareness training

A.  

True

B.  

False

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.  

True

B.  

False

A.  

True

B.  

False

A.  

Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

B.  

Reporting to regulators regarding the entity's vulnerability to fraud

C.  

Overseeing management's actions to manage fraud risks

D.  

Attesting that the organization's financial statements are free of material misstatements caused by fraud