Which of the following is NOT included in G20/OECD Principles of Corporate Governance (the Principles)?

A. A request that governments have in place an appropriate framework to support good corporate governance practices

B. Recognition of the importance of the role of stakeholders in corporate governance

C. Support for establishing stronger protection for foreign shareholders than for domestic shareholders

D. Guidance regarding appropriate board structures, responsibilities, and procedures

Which of the following statements is FALSE regarding an organization's fraud risk management program1?

A. A Formal sanctions for intentional noncompliance should be well-publicized throughout the company

B. There should be measures in place to address failures in the design or operation of anti- fraud controls, as well as fraud occurrervces

C. The program must include mechanisms to monitor and identify breaches in compliance

D. The responsibility of handling suspected incidences of noncompliance should be delegated to someone outside of the company

According to the differential reinforcement theory, behavior is weakened when positive rewards are gained or punishment is avoided

A. True

B. False

According to Diane Vaughan. which of the following factors increases an organization s inherent inclination toward committing crime?

A. Management links employee performance goals with company performance goals

B. Rewards are given to employees who challenge the status quo

C. Management seeks out diversity in attitudes and perspectives when hiring employees

D. All of the above

The International Organization of Securities Commissions' (IOSCO) Principles for Auditor Oversight states that auditor oversight should involve a regular review process designed to ascertain whether audit firms adhere to quality control policies and procedures.

A. True

B. False

The internal auditor s fraud-related responsibilities include which of the following?

A. Evaluating whether management is actively retaining responsibility for oversight of the fraud risk management program

B. Attesting that the organization s financial statements are free of material misstatements caused by fraud

C. Reporting to regulators regarding the entity's vulnerability to fraud

D. Overseeing managements actions to manage fraud risks

In response to an employee s failure to meet performance expectations. a manager demotes the employee to a junior-level position This is an example of what type of behavioral response?

A. Negative reinforcement

B. Punishment

C. Positive reinforcement

D. None of the above

Which of the following is FALSE regarding fraud examiners responsibilities under the ACFE Code of Professional Ethics?

A. Confidential information provided to fraud examiners by their clients is considered privileged and therefore legally exempt from disclosure in all circumstances

B. In determining what information to include in a fraud examination report, fraud examiners should try to decide what users will consider important and material

C. If fraud examiners become aware of a situation that might appear to others as though they have a conflict of interest they should immediately disclose the situation to company management

D. Fraud examiners must obtain and document evidence in a manner that ensures that the chain of custody is preserved

The objective of anti-fraud controls is to:

A. Completely eliminate residual fraud risk

B. Reduce the residual fraud risk to a level that is significantly smaller than the inherent fraud risk

C. Reduce the inherent fraud risk to a level that is significantly smaller than the residual fraud risk.

D. Completely eliminate inherent fraud risk

Which of the following is NOT explicitly prohibited by the ACFE Code of Professional Ethics?

A. Participating in an activity where there is an undisclosed conflict of interest

B. Engaging in behavior that is against the law

C. Drawing conclusions based upon evidence

D. Acting in a way that could be deemed unethical by the industry