1. Usually, for everyone involved—especially victims—the investigation of fraud is very:
a. Pleasant and relaxing.
d. Traumatic and difficult.
2. To prevent fraud from reoccurring, most organizations and other fraud victims should:
a. Take no legal action.
b. Pursue civil remedies.
c. Pursue criminal remedies.
d. Pursue either civil or criminal action.
3. All of the following are ways to create a culture of honesty and high ethics except:
a. Creating a positive work environment.
b. Hiring the right kind of employees.
c. Having top management model appropriate behavior.
d. Eliminating opportunities for fraud.
4. The tone at the top when related to fraud usually refers to management’s attitude about:
a. Office parties.
b. Fraud prosecution.
c. Employee absenteeism.
d. How it models and labels appropriate behavior.
5. Research shows that fraud occurs less frequently when employees feel:
a. Abused by management.
c. Challenged with unreasonable performance goals.
d. Ownership in the organization.
6. Opportunities to commit fraud can be eliminated by identifying sources of fraud, by implementing controls, and through independent checks. One other effective way of eliminating opportunities is:
a. Teaching employees to monitor and report fraud.
b. Terminating and punishing employees who commit fraud.
c. Failing to terminate or punish employees who commit fraud.
d. Identifying indicators of fraud or red flags.
7. Drawbacks to establishing a hotline for employees to report fraud include all of the following except:
b. Many incidents reported are hoaxes motivated by grudges.
c. Fraud symptoms reported are caused by non-fraud factors.
d. This method for finding fraud is outdated.