Question 1.1. Two of the three elements of Dr. Donald Cressey’s Fraud Triangle are Opportunity and Rationalization. What is the third element?
Question 2.2. Overstating revenues and understating liabilities and expenses typifies which of the following fraud schemes?
Purchase and sales schemes
Question 3.3. The word artifice means:
Question 4.4. The Department of Justice has defined “corporate fraud” to include which of the following?
Obstruction of justice
Self-dealing by corporate insiders
Falsification of financial information
All of the above
Question 5.5. Which of the following statement best explains Dr. W. Steve Albrecht’s Fraud Scale?
Status pressure from family and friends
Living beyond one’s means
Poor perception of one’s workplace
All of the above
Question 6.6. A __________ framework of internal controls and corporate governance is standard for many organizations in the United States.
Question 7.7. The requirement to reimburse a company for any bonuses or other compensation received during the 12-month period following the restatement of financials as a result of misconduct is called:
Question 8.8. The Sarbanes-Oxley Act is also called what?
Corporate Fraud Protection Act of 2002
Public Corporation Accounting Oversight Act
Public Company Accounting Reform and Investor Protection Act of 2002
Principles of Federal Prosecution of Business Organizations
Question 9.9. A robust fraud prevention program must incorporate the _________ steps as detailed in the Amended Federal Sentencing Guidelines for Organizational Crime.
None of the above
Question 10.10. A system of checks and balances between management and all other interested parties with the aim of producing an effective, efficient, and law-abiding corporation is known as:
Code of conduct
Culture of compliance