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NEW QUESTION 30
Which of the following is NOT one of the three general approaches used to control corporate crime?

A. Strong intervention of the governmentB. Withdrawal of financial institution fundingC. Voluntary changes in corporate attitudes and structureD. Consumer action to force change

Answer: B

 

NEW QUESTION 31
Which of the following best describes the purpose of The National Commission on Fraudulent Financial Reporting (the Treadway Commission)?

A. Designing a model corporate compliance programB. Determining the specific requirements of the Principles of Risk ManagementC. Studying the effect of the threat of vicarious liability on the behavior of corporate executivesD. Defining the responsibility of the auditor in preventing and detecting fraud

Answer: D

 

NEW QUESTION 32
Which of the following is FALSE regarding corporate governance'

A. Effective corporate governance practices are considered to be the foundation of fraud risk management.B. Corporate governances primary purpose is to ensure the accuracy of the organizations financial reportsC. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategyD. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization

Answer: C

 

NEW QUESTION 33
Which of the following principles of corporate governance pertains to the duty of the organization to act in the best interest of society?

A. TransparencyB. ResponsibilityC. AccountabilityD. Fairness

Answer: B

 

NEW QUESTION 34
Which of the following is TRUE regarding the internal audit function's reporting responsibilities pertaining to fraud?

A. The internal audit function is not permitted to communicate with the board of directors about fraud, as that is the responsibility of external auditors.B. The internal audit function should not disclose the results of its fraud audits to senior management or the board of directors in order to maintain independence.C. The internal audit function should discuss how and when to report fraud-related issues with senior management and the board of directors before such issues arise.D. The internal audit function is permitted, but not required, to periodically report about the organization's fraud risks to senior management and the board of directors.

Answer: D

 

NEW QUESTION 35
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