Management at Alpha Company is developing a corporate compliance program. To ensure that the program will be effective, management should both incentivize employees for their compliance and discipline them for any violations.

• A.True
• B.False

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According to the authors of Crimes of the Middle Classes, all of the following factors have contributed to the rising problem of economic crime EXCEPT:

• A.The decrease in funds available from government assistance programs
• B.The increased opportunity for wrongdoing as a result of advancing information technologies
• C.The continued pressures of a culture that rewards affluence and success
• D.The economy's increased reliance on credit

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Which of the following is TRUE regarding proactive fraud auditing procedures?

• A.Fraud assessment Questioning techniques are most appropriately used when attempting to determine who might be responsible for a particular fraud scheme.
• B.Analytical review of the financial statements is best used to uncover small frauds that might be missed by other detection methods.
• C.Surprise audit procedures are an effective fraud detection mechanism, but they do not help prevent fraud
• D.Implementing proactive fraud audit procedures demonstrates the organization's intention to aggressively look for possible fraudulent conduct.

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In identifying the inherent fraud risks that could apply to the organization, the fraud risk assessment team should discuss:

• A.The organization's incentive programs
• B.The possibility of management's override of controls
• C.Risks to the organization's reputation
• D.All of the above

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

• A.The communication should be made in a format mat is most appropriate for the culture of the organization
• B.The more personalized the communication, the more effective it will be in encouraging employees to participate
• C.All of the above
• D.The communication should be visibly disseminated throughout the business

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