Which of the following is NOT one of the three general approaches used to control corporate crime?

• A.Strong intervention of the government
• B.Voluntary changes in corporate attitudes and structure
• C.Media blacklisting of the organization
• D.Consumer action to force change

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Which of the following is FALSE regarding a background check policy for employees'7

• A.At a minimum, management should conduct a background check on any candidate who will have constant access to cash, checks, and credit card numbers, or other easily stolen items.
• B.As part of the screening process, management should contact the references provided by the job candidate
• C.When verifying past employment, management should only ask previous employers to verify the dates the candidate was employed.
• D.Where permitted by law. management should run a background check on any existing employee who is being promoted to a position that includes access to sensitive or valuable company resources, even if a background check was run on the individual at the time of hire

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Which of the following statements is MOST ACCURATE regarding an effective system of anti-fraud controls?

• A.It prioritizes implementing detective controls over preventive controls.
• B.It fully eliminates the risk of fraud by removing opportunities for misbehavior.
• C.It deters fraudsters by increasing the perception that fraud will be detected.
• D.It focuses more on preventive controls than detective controls.

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Fraud risks related to corruption include:

• A.Reporting revenue in the wrong accounting period
• B.Payment of bribes to procure business
• C.Fraudulent customer payments
• D.Espionage by competitors

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During an external audit, the audit team identifies evidence that management has intentionally omitted some expenses from the company's financial statements in order to conceal an asset misappropriation scheme. However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

• A.The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.
• B.The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.
• C.The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.
• D.The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

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