Quiz 10 620 100 - quiz 10 PDF

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Which of the following are complexities associated with managing global fraud risk management programs? Selected Answer: Answers:

Answers 1, 2 and 3 are additional complexities associated with global fraud risk management programs. Cultural differences about reporting potential wrongdoing. Differing opportunities for fraud outside the scrutiny of corporate headquarters and in differing business environments. Communication challenges associated with different language and diluted communications. Global ERP accounting and information systems. Answers 1, 2 and 3 are additional complexities associated with global fraud risk management programs. All of the above are additional complexities associated with global fraud risk management programs. None of these are additional complexities associated with global fraud risk management programs.

Response Feedback:

Answers 1, 2 and 3 are true. Global ERP systems are generally helpful in reducing fraud risk. 0 out of 4 points

Which of the following is a true statement? Selected Answer:

The performance objectives for the people with responsibility for fraud risk management should include metrics on th reduction in reports of fraud allegations over time.

Answers: It is a leading practice to assign the responsibility for fraud risk management to a a single senior executive to establish and organizational commitment and to ensure accountability for the program.

If a single senior executive were assigned responsibility for fraud risk management, other executives would not put significant emphasis on fraud. Once a senior executive has been given responsibility for a fraud risk management program, the governance over the program shifts to that executive. The performance objectives for the people with responsibility for fraud risk management should include metrics on th reduction in reports of fraud allegations over time. Response It is important to assign the responsibility for fraud risk Feedback management to a single senior executive to establish : and organizational commitment and to ensure accountability for the program. The other answers are not true. Assigning one person to be accountable for the program does not reduce the responsibility of everyone in the organization to be accountable for fraud risk management. Although the person who has responsibility for fraud risk management should be accountable, it would not be appropriate to incentivize for a reduction in reports of fraud. In fact, reporting of potential frauds should be encouraged. Finally, governance responsibility remains with the board. 4 out of 4 points Which of the following elements is NOT part of COSO's comprehensive fraud risk management strategy? Selected Answer:

Answers:

All of the above are elements of COSO's comprehensive fraud risk management strategy. Monitor the fraud risk management process, report results and improve the process. Establish a fraud reporting process and coordinated approach to investigative and corrective action. Establish a frad risk management policy as part of organizational governance.

Select, develop and deploy preventive and detective fraud control activities. Perform a comprehensive fraud risk assessment. All of the above are elements of COSO's comprehensive fraud risk management strategy. 4 out of 4 points Which of the following is NOT a role or responsibility of the board? Selected Answer:

2. Directing the execution of the external audit.

Answers:

1. Evaluating the performance of management, challenging management and asking tough questions. 2. Directing the execution of the external audit. 3. Establishing or approving corporate strategies, including risk management strategies. 4. Setting the tone at the top, and establishing expectations about integrity, corporate, values and accountability. 5. Maintaining professional skepticism. 6. All of these are responsibilities of the board.

Response Feedback:

The correct answer is " Directing the execution of the external audit. " While the board may retain the external auditors, and communicates with them, the auditor has primary responsibility for the execution of the audit. 4 out of 4 points

Which statement is true?

Selected Answer:

A positive corporate culture has a positive affect on all three sides of the fraud triangle (pressure and incentives, rationalization, and oppotunity)

Answers: A positive corporate culture has a positive affect on all three sides of the fraud triangle (pressure and incentives, rationalization, and oppotunity) The easiest way to build a strong corporate culture is to hire ethical people. Although a positive corporate culture keeps employees happy and reduces the incentives to commit fraud, the impact cannot be quantitatively measured. Companies should have a consistent, one-time communication about expectations and code of conduct. It should be communicated in a written policy at the time of hire. Response Feedback :

Strong ethics and fraud deterrence communicatons are ongoing. They may be communicated at the time of hire, but they shouldn't be "one and done". They have a measurable positive impact on all aspects of the fraud triangle.

4 out of 4 points Which of the following is NOT a characteristic of skepticism? Selected Answer:

Requiring proof of all assertions.

Answers:

Interpersonal understanding Suspension of judgment A questioning mind Search for knowledge Requiring proof of all assertions. Autonomy or a conviction to decide for oneself Self esteem

Response Feedback:

Skepticism does not require micro-management or proof for all assertions. The other elements are characteristics of skepticism.

4 out of 4 points The risks of management override of internal controls can be eliminated through a robust fraud risk management program, including active and vigorous oversight by the board. Selected Answer: Answers:

Fals e True Fals e

Response Feedback :

Because management is primarily responsible for the design, implementation, and maintenance of internal control, the entity is always exposed to the danger of management override of controls, whether the entity is publicly held, private, not-for-profit, or governmental. A strong fraud risk management program and active oversight by the board can mitigate this risk, but does not eliminate it....