In the context of fraud examination, integrity requires all of the following EXCEPT:

• A.Avoidance of differences of opinion
• B.Subordination of desires for personal gain to the interests of clients, employers, and the public
• C.Independence of mental attitude
• D.An ability to analyze situations where no professional rules are specifically applicable and determine right from wrong

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Which of the following is TRUE regarding the communication of the fraud risk assessment process?

• A.The communication should actively encourage employees to participate in the assessment process
• B.The communication should be visibly disseminated throughout the business
• C.All of the above
• D.The communication should be in the form of a personalized message from the assessment sponsor

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Which of the following is one of the recommendations made by the National Commission on Fraudulent Financial Reporting (the Treadway Commission) to reduce the probability of fraud in financial reports?

• A.A mandatory independent compensation committee
• B.A written charter for management
• C.Shareholder oversight of internal controls
• D.Adequate audit committee resources and authority

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Effective risk management involves balancing which of the following?

• A.The organization s internal controls and its financial goals
• B.The organization s risk appetite and its ability to meet its objectives
• C.The organization s financial reporting model and its risk tolerance
• D.The organization s regulatory requirements and its available resources

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Jones, an accounting manager for a software company, wants to improve her team's adherence to the company's formal accounting policies and procedures and reduce the number of process exceptions they experience. According to behaviorist theories, which of the following options would be the most effective way for Jones to condition her staff to follow the company's formal accounting processes?

• A.Publicly call out and criticize employees who deviate from the formal processes.
• B.Demote employees who do not adhere to the expected processes.
• C.Take away a day of paid time off for each process exception.
• D.Offer a bonus to anyone who experiences no process exceptions for ninety days-

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