Chapter 2 Flashcards
1
Q
Your friends ask you to do a special favor
A
Referent power
2
Q
Your boss asks you to do something
A
Legitimate power
3
Q
Managements role
Communication
Clear organization structure
Effective internal audit department
A
Control environment
4
Q
Fraud reduces net income on a dollar for dollar basis
A
How much do companies lose in fraud?
5
Q
Fraud loss / profit margin %= additional revenue
A
Fraud loss equation
6
Q
Most common type of occupational fraud
A
Employee embezzlement
7
Q
Outlaws giving or receiving of any thing of value by a subcontractor to a prime contractor in us government contracts
A
Anti-kick back act of 1986
8
Q
Accounting system
Management
Control activities
A
Control system
