To reinforce an anti-fraud culture, it is BEST for an organization's management to:

• A.Require senior leaders to follow the same ethics policies that are in place for all staff-level employees.
• B.Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
• C.Discourage employees from questioning their immediate supervisor's actions or decisions if they have concerns.
• D.Discipline any employees who publicly express their frustration regarding organizational policies.

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In response to an employee's failure to meet performance expectations, a manager demotes the employee to a junior-level position. This is an example of what type of behavioral response?

• A.Positive reinforcement
• B.Negative reinforcement
• C.Punishment
• D.None of the above

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Which of the following choices is an example of an anti-fraud control that is primarily preventive in nature?

• A.Continuous audit techniques
• B.Proactive data analysis techniques
• C.Employee background checks
• D.Whistleblower hotline

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Mary is charged with implementing a fraud reporting program on behalf of her organization.
Which of the following is a best practice that Mary should follow to ensure that the program is successful?

• A.Mary should inform employees that the names of all individuals who report misconduct will be shared with the organization's governing body and law enforcement.
• B.Mary should inform employees that they are required to report any information about potential fraud directly and only to their immediate supervisor.
• C.Mary should inform employees of the precise methods for reporting potential fraud, such as completing an online form.
• D.Mary should inform employees that they will be held accountable for reporting tips that cannot be verified.

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Gian is a manager at Ram Co. and is tasked with building the company's fraud risk management program. As a starting point, Gian wants to formally define the program's objectives. Which of the following is TRUE regarding the process of defining the objectives of the fraud risk management program?

• A.Gian must ensure that the company's investment in the fraud risk management program outweighs the benefit of those controls.
• B.Gian should examine previous fraud occurrences to determine how the ideal fraud risk management program would have prevented them.
• C.When expressing the organization's risk appetite, Gian should do so without regard to the company's culture or operations.
• D.Gian must assign both a quantitative and qualitative measure to the company's risk appetite to accurately measure the program's effectiveness.

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