According to Diane Vaughan's research, which of the following factors makes an employee more willing to commit fraud on behalf of their organization?

• A.The employee thinks their actions will be excused if they come forward as a whistleblower.
• B.The employee believes they are legally obligated to comply with anything their manager asks them to do as part of their job responsibilities.
• C.The employee feels a high degree of responsibility for the organization's success.
• D.The employee hopes to distinguish themselves from coworkers at the organization who are less willing to engage in unethical or criminal behavior.

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In the area of criminological theory, compliance is the theory that tries to prevent crime by providing economic incentives for voluntary conformity to the laws and using administrative efforts to control violations before they occur.

• A.True
• B.False

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Based on research regarding the criminogenic tendencies of organizations, employees are more likely to engage in fraudulent behavior when given a direct order to do so by a superior due to an inherent desire to obey people in positions of authority.

• A.False
• B.True

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A government auditor is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions (ISSAI). Which of the following is TRUE regarding the auditor's consideration of fraud during this engagement?

• A.In addition to fraud, the auditor should remain alert to potential occurrences of abuse during the audit.
• B.The auditor has the automatic ability to withdraw from the audit engagement if fraud is found.
• C.The requirements found in International Standard on Auditing (ISA) 240 do not apply to the engagement
• D.The objectives of the audit are likely narrower than those of a private-sector financial statement audit.

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Article II of the ACFE Code of Professional Ethics prohibits illegal or unethical conduct, but It allows exceptions for unknowing violations of the law.

• A.True
• B.False

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