According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), internal control is defined as:

• A.The system that is designed and implemented to eliminate all uncertainty and risk while also ensuring the achievement of organizational goals.
• B.A process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
• C.The system enacted to ensure effective oversight of the board of directors, management, and all other parties responsible for an organization's direction, operations, and performance.
• D.A process aimed at proactively identifying, assessing, and managing an organization's vulnerabilities to fraud by both internal and external sources.

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Which of the following is one of the four recommendations made by the National Commission on Fraudulent Financial Reporting the Treadway Commission to reduce the probability of fraud in financial reports?

• A.Have a mandatory independent compensation committee.
• B.Develop a written charter for management.
• C.Have adequate audit committee resources and authority.
• D.Give shareholders oversight of internal controls.

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According to the differential reinforcement theory, behavior is strengthened when which of the following is applied?

• A.Loss of reward
• B.Positive reinforcement
• C.Negative stimuli
• D.Punishment

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Jane, a Certified Fraud Examiner (CFE), was hired lo conduct a fraud examination at XYZ Company Her examination did not reveal any conclusive evidence that fraud had occurred or was occurring Consequently. XYZ's management asked Jane to state in her official examination report that the company is free of fraud as a means of assuring the board of directors that the company's anti-fraud controls were effective. The ACFE Code of Professional Ethics prohibits Jane from complying with management's request.

• A.True
• B.False

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According to the 2020 Report to the Nations.___________schemes ate the MOST COMMON form of occupational fraud, while_________schemes are the MOST COSTLY form of occupational fraud.

• A.Asset misappropriation; corruption
• B.Corruption, asset misappropriation
• C.Financial statement fraud: corruption
• D.Asset misappropriation: financial statement fraud

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