Test for “Building a Fraud-Resistant Organization”

1. Which of the following may be the best way top management establish and communicate organizational values throughout a given year?a.Linking values to the employee goal setting processb.Required annual ethics trainingc.Reinforcement of positive daily behaviord.Combination of a., b., and c.e.Combination of a. and c. only.

10 points   

QUESTION 2

1. According to the Association of Certified Fraud Examiners, employees indicate they have concerns about which of the following when reporting fraud using their organization’s whistleblower hotline?a.Retaliation from managementb.The tip not being taken seriouslyc.The tip will be ignoredd.Only a. and b. are correct.e.Responses a., b., and c. are all correct.

10 points   

QUESTION 3

1. For which party or parties in the financial reporting supply chain is there NOT a need to exercise some level of skepticism?a.Internal auditorsb.Board of Directorsc.External auditorsd.None of the above

10 points   

QUESTION 4

1. Which of the following may represent the most likely way an organization can successfully measure its tone or mood among middle management employees?a.A survey or poll conducted by top level managementb.Monthly departmental meetings with top level managementc.Exit Interviewsd.An annual, private discussion held between top level management and their supervisees

10 points   

QUESTION 5

1. How might a multinational organization tailor its domestic code of conduct and ethics to meet another country’s standards?a.Create a separate code of conduct for each country in which business is conductedb.Create a minimum global standard, based on domestic standards and tailor it slightly by country or operation based on certain legal, accepted practices in that country.c.The organization would not tailor its domestic code of conduct, it would use the same code of conduct across all countries in which it conducts businessd.Create a separate code of conduct for each continent in which business is conducted

10 points   

QUESTION 6

1. Which common judgment tendency is defined as using an initial value as a starting point and adjusting insufficiently away from that value?a.Anchoringb.Overconfidencec.Availabilityd.Confirmation Bias

10 points   

QUESTION 7

1. Which of the following would NOT be an example of building a global fraud resistant culture while operating in a foreign country?a.Tailoring ethics and compliance training for local customsb.Allowing the foreign business unit to develop its own code of conduct and related compliance trainingsc.Requiring expatriates to fill key financial and operational positions in foreign business unitsd.Create a minimum global standard code of conduct and tailoring slightly based on local customs

10 points   

QUESTION 8

1. The Ethics Research Center 2014 Report on Ethical Leadership, 2013 National Business Ethics Survey, noted the resulting of a poll relating to how employees evaluate their supervisors.  Which of the following was one of the top results in the study?a.Senior managers’ ability in handling crisesb.Financial results of the organizationc.New projects instituted during their tenured.The level of compensation adjustments during their tenure

10 points   

QUESTION 9

1. How can the Board of Directors effectively manage the oversight of risk for an organization?a.Rely solely on top management to provide risk analyses to the board for considerationb.Actively understand the organization’s strategy in order to understand the associated risks of doing businessc.Focus only on monitoring financial reporting fraud risksd.Spend Board meetings listening to presentations relating to risks versus reading materials ahead using the meetings for discussion and open dialogue

10 points   

QUESTION 10

1. At which level of a company is it most important for the Board of Directors to have an open and transparent chain of communication?a.C-Level Managementb.Staffc.Middle Managementd.Only a. and b.e.Only b. and c.f.At a., b., and c.