CFE Exam Quiz 19

It should be noted that in Skinner’s study it was found that Skinner, punishment brings a temporary abolition, but only through permanent monitoring and enforcement.

It should be noted that all of the statements given above are correct. In addition,

It should be noted that all of the factors stated above have contributed to the increase in economic crimes.

It should be noted that one of the reasons he stated was frequent transfers and long working hours encourages not discourages isolation from other groups.

It should be noted that the Sutherlands differential association theory includes the criminal mind’s behaviors, drives, rationalizations, and motivations but also the techniques to commit the crime.

When there is systemic pressure to fraud, an organization can not always get its agents together in these activities. This cohesion is hindered by at least three factors.
First, the pressures on fraud could not reasonably impact a company’s divisions.
Second, some employees are unaware of the difficulty of getting the necessary resources, even in high-pressure departments.
It ensures that an employee usually requires a high level of responsibility for the performance of an organization and the ability to achieve such objectives before an incentive for wrongdoing will occur.

It should be noted that The criminal Charles McCaghy said that the pressures on profit “are the most pressing force behind market deviance, be it price-fixing, the disruption of competition, or the misrepresentation of a commodity.”

According to Braithwaite, businesses may turn to crime as the result of “blocked incentives.” as white-collar crime can only occur in secretiveness, deviant subcultures, no lines of communication can grow, and people work within areas of responsibility.

It should be noted that all of the approaches mentioned above are correct as Volunteer improvement might include creating better business ethics and corporate organizational changes, Government checks could include corporate chartering, decentralization and divestiture, greater and more proactive compliance resources, stricter fines, increased use of corporate advertising as a punishment and perhaps nationalization, and consumer group pressure.

Clinard and Yeager suggested that if businesspeople rejected an unethical order, a broad and detailed industrial code of ethics that many businesspeople favor would be a great help. This would help define better the boundaries of reasonable or ethical conduct, strengthen the industry’s ethical environment, and minimize misleading practices where there is intense competition. Greater participation of shareholders may require corporate enforcement, but the company is actually managed and made decisions by its management staff; shareholders mainly focus on stock growth and dividends.

The media attention on violations of the law, Clinard and Yeager find, is perhaps the most dreaded outcome of the sanctions imposed on a company. Advertising can also inform the public about regulatory checks and can allow them to understand the purpose of the checks. Informal advertising is usually delivered by media as news items, whereas formal advertising is an obligation to publicize publicity or other announcement accepting a breach by an organization and to take corrective measures as part of enforcement action.

It should be noted that compliance is intended to achieve compliance with the law without identifying, prosecuting or punishing criminals.

It should be noted that deterrence programs attempt to control individuals’ immediate actions, not compliance-targeted long-term behaviors.

It should be noted that all of the statements given below are correct. However, there is one more occupational crime which Gary mentioned i.e Crimes by individuals as individuals

There were two components of the potential opportunity to commit a breach of trust, in Cressey’s view: general information and technical skill. General information is simply the awareness that the role of confidence of the employee might be violated. Such experience can come from witnessing other misunderstandings, from seeing other employees ‘ deceptive behaviour, or from being generally aware that the employee is in a position where he can profit from the confidence of his employer in him.

It should be noted that rationalization is often stopped after the criminal act has taken place. That is, of course, because most of us are doing something contradictory to our values for the first time, it bothers us. It gets easier when we replay the act.

It should be noted that the existence of a non-shareable financial problem alone will not lead an individual to commit fraud, in compliance with the Fraud Triangle Model

The degree of harm to the public, the extent of the violation, the level of negligence by high corporate managers, the severity of the violation, proof of intent to violate, etc., are some of the factors considered when choosing to bring a criminal action against a company.

It should be noted that Cressey described long-term violators as individuals who transferred the funds of their employer or funds belonging to the clients of their employer by taking relatively small amounts over a period of time. Similar to independent businessmen, long-term violators usually preferred to rationalize “borrowing.”

The independent businesspersons in Cressey’s study were individuals who were in business for themselves and who converted the “deposits” that they had been given. Perpetrators in this category tended to use one of two common excuses: (1) the money they converted was “borrowing” or (2) the funds entrusted to them were theirs— you can not steal yourself.

Long-term criminals in the study found it difficult to justify exchanging money without the rationalization they were borrowing, while at the same time viewing themselves as honest and trustworthy. They have two choices in this situation: (1) they can readopt the attitudes of the (law-abiding) social group they identified with before the robberies started, or (2) they can adopt the attitudes of the new category of individuals (criminals) they now associate with.

It should be noted that If social expectations and perceived incentives are high and personal honesty is low, job fraud is far more likely to occur than when the reverse is true.

It should be noted that other rationalizations of long-term violators have also been described, but they have almost always been used in connection with the “borrowing” theme:
I: embezzling to keep their families from shame, disgrace or poverty;
II: theirs was a case of “necessity;” their employers cheated them financially; and
III: their employers were dishonest towards others and their employers were dishonest. have found out that returning the funds was more complicated than stealing them first.

Cressey’s third group of criminals addressed were absconders— people taking the money and running. Cressey noticed that physical separation usually led to non-shareable issues for absconders. He noted that these individuals, “usually unmarried or separated from their spouses, live in hotels or rooming houses, has few primary group associations of any kind, and own small property. Only one of the absconders interviewed had held a higher status position of trust, such as an accountant, business executive, or bookkeeper. ”He also found that the absconders tended to have lower occupational and socioeconomic status than the members of the other two categories did.

It should be noted that a person who embezzles his employer for perceived unfair treatment to get revenge uses financial means to solve what is essentially a non-financial problem.

It should be noted that Cressey found that the embezzlers he examined typically rationalized their actions by treating them as (1) inherently non-criminal, (2) justified, or (3) part of general irresponsibility for which they were not entirely accountable.37 He also noticed that the rationalizations used by trust violators appeared to be related to their positions and the manner in which they performed their violations.

It should be noted that all the options given below are a part of the fraud triangle.

It should be noted that occupational fraud has three categories which include not only corruption and financial statement fraud but also asset misappropriation.

It is to be noted that Sir Adrian Cadbury, chairperson of the committee that produced the Cadbury Report’s seminal corporate governance guidelines, explained that the aim of corporate governance is to “encourage the efficient use of resources and demand transparency for the use of those resources. The goal is to balance the needs of people, businesses and society as nearly as possible.

It should be remembered that the board headed by the chairperson and consisting of non-executive directors elected by the shareholders comes under the supervisory board group. On the other hand, the board that is headed by the company CEO and composed of company executives oversees the business day to day operations is the executive board. Moreover, independent/outside directors might be completely independent of the organization aside from their role on the board.