CFE Exam Quiz 12

All the management philosophies rely on the premise that incentives and promotion are not only the best way to sell but the best way to ensure the correct working conditions of workers.

Most criminology courses are based around the basic premise that offenses are specific types of actions and are best understood as the result of operant conditioning.

Behavioral experiments like Skinner’s indicate that punishment is the least effective way to change behavior.

Applications of the reinforcement approach are that it presents positive stimuli and withdraws negative stimuli.

Corporations can be held responsible for corporate management offenses. The organization is responsible for an employee’s behavior unless the individual has behaved for the apparent purpose of helping the corporation. A company can not seek to avoid assistant responsibility by simply claiming it had not realized what was taking place for the actions of its workers.

In many instances, even without an individual officer planning to conduct an offense, a company may be criminally responsible for the collective knowledge of some of its workers.

Management will ensure that there are sufficient internal controls to deter and detect fraud.

The eight components of the ERM Framework are:
-Internal environment
-Objective setting
-Event identification
-Risk assessment
-Risk response
-Control activities
-Information and communication
-Monitoring

COSO proposes five concepts to promote an effective control system in design and implementation:
-The dedication of workers at all rates of honesty and ethics is clear.
-The Management Committee is autonomous of the management and controls internal control growth and efficiency.
-Through board monitoring, management carries out the operational priorities in frameworks, control lines and qualified authority and duties.
-The company is dedicated to recruiting, cultivating and keeping professional people in line with its goals.
-The company pays for its internal control duties in fulfillment of targets

According to COSO, risk assessment involves the following principles:
-The company establishes clear goals that enable threats linked to expectations to be defined and assessed.
-The organization defines and analyzes threats to the accomplishment of its priorities across the company to assess whether risks should be handled. —-When determining the possibility of meeting the targets, the company recognizes the potential for fraud.
-The company recognizes and reviews improvements that could have significant impacts on the internal control structure.

The Board of directors shall consider and react by identifying the real and unique risk of fraud on the corporation and its potential impact:
-Create an appropriate atmosphere and reasonable management standards to promote a culture of anti-fraud.
-Awareness growing across the company regarding threats of theft.
-Build a fraud risk assessment and reduction approach that is consistent with the risk appetite and strategic plans of the company.
-Control of the fraud risk management activities of the organization

The responsibilities of the audit committee include:
-Daily status updates of confirmed or suspected fraud are issued.
-About the defined threats of fraud and the measures taken to prevent and detect fraud, meetings with main domestic parties (such as the head of audit or other senior financial persons)
-Knowing how fraud danger is handled by internal and external audit approaches.
-To provide confirmation to the external auditors of the efficacy of the fraud risk management of the audit committee.
-To open discussions on proven and alleged wrongdoing with external auditors

-Ensuring the fraud processes are planned and managed consistently enough to resolve identified fraud threats is ample time and attention for
assessment to provide accurate confidence to the board and management.
-Assess the quality and adequacy of management-related fraud threats found (reflecting, in particular, the fraud risks based to the bypass of control management).
-To ensure that all threats of fraud have been properly addressed, notify those responsible for the fraud risk assessment periodically.
-Hold a qualified skeptical approach and be vigilant about indicators of theft.
-Actively contribute please promoting the legal structure of the company.
-Find the fraud risk assessment of the company in the planning of its audit report. Test compliance techniques and skills of fraud prevention on a
periodic basis.

The content of slanderous message should include cause real damage to the individual to whom the contact is aimed.

Libel is a false declaration released that damages the credibility of an individual.

Slander can cause injury to a personal individual and request lawsuit proceedings against a fraud investigator.

A false arrest can do more than put a person behind bars. Courts concluded that many forms of detention were a false jail, like trapping an employee in a store, dragging a buyer from a car, and physically detaining a victim.

The law explicitly notes that leaders of ACFE are not entitled to conflicts of interest. If a fraud examiner’s ability to objectively assess and present a problem for a client is compromised by the existing, previous or possible future relationship with parties to the fraud review, a conflict of interest exists.

Objectivity refers to the ability to investigate fraud without being affected by one’s emotions or other’s feelings and motivations. To insure the investigations are unbiased, fraud examiners must remain independent, make conclusions in test situations without undue interference from others, and prevent being put in roles in which they would not be able to work independently.

From an instrumental perspective, people weigh the advantages and disadvantages of the rule and act accordingly.

The rule’s “diligence in carrying out its duties” refers to several activities that collectively define high-quality fraud assessment functions.

What one considers right and moral is the focus of the normative perspective.

Following are some rules regarding conflict of interest
-A fraud inspector who works for a company full-time shall not take on other employment causing problems or damages for the client.
-A “dual employee” should not be hired by one corporation and should be pursued by a fraud prosecutor for infiltrating and transmitting confidential details by another company or person (unless the employer approves, of course, with the intention of apprehending any other group that is employed by this firm).
-A fraud inspector should not consider contributions to a case from both sides— same as attorneys, serving any group in contracts, lawsuits or trials are forbidden.

Following are the steps followed in an investigation:
-Acknowledge the problem or question to be studied.
-Prescribe a solution to help avoid any upcoming problem like this
-Analyze the proof and infer the question or problem

A fraud examiner shall not enter into conflicts of interest. If the capacity of a fraud investigator to assess and view a client fairly is compromised by an ongoing, past or potential future association with parties to the fraud investigation, a conflict of interest occurs.

The means-end analysis measures how well an intervention, sometimes contrasted with a particular course of action, fulfills its intended purposes.

Codes of professional ethics and statutory law are more or less focused on pervasive universal principles and values and both reflect the conduct factors which were selected to be brought forward in writing by a commission or legislation.

In the work environment, two forms of ethics exist — general ethics (spirit) and technical ethics (rules).

If they have a sound understanding of ethics fraud examiners can work through the ethical dilemma, analytical tools are provided for a better understanding of the situations, better communication of ethics is enabled among the examiners.

The decision control (control of actual decisions taken) and the process control (control of the ability to state one’s case) are two control areas that usually concern people.