Review Questions - Part V Flashcards
Corporate governance specifies distribution of rights, responsibilities, lays down rules for decision making:
True
One of five fraud risk and management principles described in Fraud Risk Management Guide
- Fraud investigation/corrective action
- Fraud risk assessment
- Fraud risk management monitoring activities
What should be formally incorporated into annual audit planning process
Fraud risk assessment
Antiretaliation component of whistleblower policy should NOT
Describe the penalties people will face for refusing to provide tips
According to Dr. Albrecht’s Fraud model, what variable drives occupational fraud
- Situational pressure
- Perceived opportunity
- Personal Integrity
What risk management risks threaten organization
- Identification
- Treatment
- Monitoring
Research shows that criminal social status is determinant factor of white collar crime
FALSE
Compliance Theory = conformity without detect, penalize violator
TRUE
What COSO element is the evaluation and communication of internal control related to
Monitoring
Misbehavior less likely to be detected in complex org structure than simple structure
TRUE
What is Accountability
Effective ownership and reporting structures
What is objective of Fraud Risk
residual risk smaller then inherent risk
Which objective helps organization identify what makes it vulnerable to fraud
Fraud Risk
Firms required to disclose all financial info no matter cost burden
FALSE
What is NOT a principle of sound Corporate Governance
Independence
