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NEW QUESTION 38 In response to a risk identified during a fraud risk assessment, management decides to purchase fidelity insurance to help protect the company against the associated risk of loss This response is known as:

• A. Mitigating the risk
• B. Avoiding the risk
• C. Transferring the risk
• D. Assuming the risk

Answer: C   NEW QUESTION 39 Which of the following is TRUE regarding government auditors' responsibilities to report evidence of potential fraud uncovered during an audit of a public-sector organization's financial statements?

• A. All government auditors maintain the same requirements for reporting evidence of potential fraud uncovered during a public-sector financial statement audit.
• B. The requirements for government auditors to report evidence of potential fraud depend on the jurisdiction and the specific audit mandate.
• C. Government auditors' reporting requirements pertaining to fraud are substantially the same as those for external auditors in the private sector.
• D. Government auditors are legally prohibited from reporting evidence of potential fraud to any parties outside the organization being audited.

Answer: B   NEW QUESTION 40 According to Diane Vaughan. which of the following factors increases an organization's inherent inclination toward committing crime?

• A. Rewards are given to employees who challenge the status quo
• B. Management separates employee performance goals from company performance goals
• C. All of the above
• D. Management encourages employee loyalty through social functions

Answer: D   NEW QUESTION 41 Which of the following is NOT an effective way to help prevent fraud through the organization's performance measurement and management programs?

• A. Establishing loosely defined job descriptions that allow employees flexibility in their roles
• B. Providing regular training to ensure that all employees are sufficiently prepared to perform their tasks
• C. Tying employee compensation to reasonable organizational performance goals
• D. Including ethics-based metrics as a component of performance evaluations

Answer: A   NEW QUESTION 42 The availability of suitable targets, absence of capable guardians, and presence of motivated offenders are the three most important elements that influence crime according to which of the following criminological theories?

• A. Conditioning theory
• B. Rational choice theory
• C. Social control theory
• D. Routine activities theory

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