According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

• A.All of the above
• B.Management separates employee performance goals from company performance goals
• C.Rewards are given to employees who challenge the status quo
• D.Management encourages employee loyalty through social functions

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The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

• A.False
• B.True

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White, a Certified Fraud Examiner (CFE). was hired to conduct a fraud examination. She did not find fraud, but. in White's opinion, there were several internal control deficiencies that, if not remediated, could facilitate the occurrence of fraud. Under the ACFE Code of Professional Ethics. White may include her opinion on the controls in her report to management

• A.False
• B.True

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Which of the following Is NOT a way that an organization's fraud risk assessment should be Incorporated Into the audit process?

• A.It should be used to replace the auditor's own identification and assessment of fraud risks.
• B.It should be used to design audit tests to evaluate whether the controls are operating effectively.
• C.it should be used to increase awareness in the development of audit programs for areas that have been identified as having a moderate-to-high risk of fraud.
• D.It should be used to assess whether there is a moderate-to-high risk of management overriding controls within the moderate-to-high fraud risk areas.

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Which of the following is NOT a responsibility of the organization s board of directors?

• A.Managing the performance of employees charged with carrying out business activities
• B.Serving as the middlemen between shareholders and management
• C.Acting as guardians of the organization s resources and assets
• D.Assessing the strategy and underlying purpose of management's decisions and actions

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