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NEW QUESTION 29
Which of the following is FALSE regarding a fraud risk assessment?

  • A. The assessment should be used to improve employee fraud awareness
  • B. The designation of an area as high risk should only occur if the assessment has conclusively revealed that fraud is occurring there.
  • C. The assessment team should consider how employees behave as part of its assessment
  • D. The objective of the assessment is to help the organization identify what makes it most vulnerable to fraud.

Answer: B

 

NEW QUESTION 30
Employees should be kepi unaware that management is watching for lifestyle and behavior changes in staff members that might indicate fraud

  • A. False
  • B. True

Answer: B

 

NEW QUESTION 31
According to Diane Vaughan, which of the following factors increases an organization’s inherent inclination toward committing crime?

  • A. All of the above
  • B. Rewards are given to employees who challenge the status quo
  • C. Management links employee performance goals with company performance goals
  • D. Management seeks out diversity in attitudes and perspectives when hiring employees

Answer: C

 

NEW QUESTION 32
Which of the following statements regarding document retention policies (DRPs) is TRUE?

  • A. Document retention policies do not need to include protocols for preserving electronic documents as most IT systems automatically preserve copies of such data
  • B. All of the above
  • C. An effective document retention policy permits the organization to continue the destruction of documents when faced with potential litigation
  • D. When establishing a document retention policy, management should consider any industry-specific rules for documenting and regaining records

Answer: B

 

NEW QUESTION 33
……

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