Which of the following is an example of referent power?

Which of the following is an example of referent power?

a. Fear that you may lose your job.
b. Your friend asks you to do a special favor for him or her.
c. The offer of a job promotion.
d. Your teacher asks you to do an assignment

Answer: B

Which of the following is an example of legitimate power?

Which of the following is an example of legitimate power? 

a. The offer of valuable stock options.
b. A decision to participate in fraud based upon fear.
c. Your boss tells you to do something.
d. You do something because your colleague is more knowledgeable than you are in that particular subject matter.

Answer: C

Which of the following is not an element of most frauds?

Which of the following is not an element of most frauds?

a. Taking the assets.
b. Concealment.
c. Breaking and entering.
d. Conversion.

Answer: C

Which of the following is not a way that management can establish a good control environment?

Which of the following is not a way that management can establish a good control environment?

a. Having a clear organizational structure.
b. Proper training.
c. Communicating openly.
d. Appropriate hiring procedures.
e. All of the above are ways that management can establish a good control environment.

Answer: E

Which of the following is not a common vice that motivates people to commit fraud?

Which of the following is not a common vice that motivates people to commit fraud?

a. Gambling.
b. Drugs.
c. Expensive extramarital relationships.
d. Alcohol.
e. All of the above are vices that motivate people to commit fraud.

Answer: E

Which of the following is not a control activity (procedure)?

Which of the following is not a control activity (procedure)?

a. System of authorizations.
b. Appropriate hiring procedures.
c. Independent checks.
d. Documents and records.
e. All of the above are control activities.

Answer: B

On what element of the fraud triangle do most fraud-fighters usually focus all or most of their preventive efforts?

On what element of the fraud triangle do most fraud-fighters usually focus all or most of their preventive efforts?

a. Perceived pressure.
b. Perceived opportunity.
c. Perceived weak internal controls.
d. Rationalization.

Answer: B

It is the ___ and ____ of existing controls, not the of _______controls, that allows most frauds to be perpetrated.

It is the ___ and ____ of existing controls, not the of _______controls, that allows most frauds to be perpetrated.

a. Existence, use, lack.
b. Lack, ignoring, existence.
c. Overriding, ignoring, lack.
d. Overriding, lack, use.

Answer: C

Which of the following is not a primary control procedure?

Which of the following is not a primary control procedure?

a. Use of documents and records to create an audit trail.
b. Independent checks.
c. Decreasing work-related pressure.
d. Physical safeguards.

Answer: C

Which of the following kinds of pressure is most often associated with fraud?

Which of the following kinds of pressure is most often associated with fraud?

a. Work-related pressure.
b. Financial pressure.
c. Vice pressure.
d. All of the above.

Answer: D

How frequently do most people rationalize?

How frequently do most people rationalize?

a. Often.
b. Sometimes.
c. Rarely.
d. Never.

Answer: A

Who generally has the highest risk of becoming a fraud victim?

Who generally has the highest risk of becoming a fraud victim?

a. Businessperson.
b. Older, less educated people.
c. College students.
d. None of the above.

Answer: B

Which of the following noncontrol factors provides opportunities for fraud?

Which of the following noncontrol factors provides opportunities for fraud?

a. Inability to judge the quality of performance.
b. Lack of access to information.
c. Failure to discipline fraud perpetrators.
d. Lack of an audit trail.
e. All of the above.

Answer: E

Which of the following is not one of the three elements of the control system of an organization?

Which of the following is not one of the three elements of the control system of an organization?

a. The control environment.
b. The accounting system.
c. Management.
d. Control activities or procedures

Answer: C

Opportunity involves:

Opportunity involves:

a. Opportunity to conceal fraud.
b. Opportunity to avoid being punished for fraud.
c. Opportunity to commit fraud.
d. All of the above.
e. None of the above.

Answer: D

Which of the following is not a common type of fraud pressure?

Which of the following is not a common type of fraud pressure?

a. Vices.
b. Work-related pressures.
c. Financial pressures.
d. Pressure to outsmart peers.

Answer: D

If pressures and opportunities are high and personal integrity is low, the chance of fraud is:

If pressures and opportunities are high and personal integrity is low, the chance of fraud is:

a. High.
b. Medium.
c. Low.
d. Very low.

Answer: A

Which of the following is a common perceived pressure?

Which of the following is a common perceived pressure?

a. The ability to outsmart others.
b. Opportunity to cheat others.
c. A financial need.
d. The ability to "borrow" money by committing fraud.

Answer: C

Which of the following is not one of the three elements of fraud?

Which of the following is not one of the three elements of fraud?

a. Perceived pressure.
b. Perceived opportunity.
c. Rationalization.
d. Intelligence

Answer: D

Fraud perpetrators:

Fraud perpetrators:

a. Look like other criminals.
b. Have profiles that look like most honest people.
c. Are usually very young.
d. Are none of the above.

Answer: B