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

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

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

• A. Discourage employees from voicing concerns regarding senior leadership ' s actions or decisions.
• B. Use a checklist of initiatives to ensure that all the elements of a strong corporate culture are in place.
• C. Demonstrate the same ethical behavior required of individuals at lower levels of the company.
• D. Discipline any employees who question their direct supervisor's behavior or policies.

Gregory, an internal auditor, and Brandon, the company ' s purchasing manager, have had several heated disagreements over purchasing procedures and policies. Gregory has just been told that he will be the lead on the company ' s fraud risk assessment. During the fraud risk assessment. Gregory should:

• A. Confront Brandon about the disagreements and discuss how they increase the organization ' s risk of fraud-
• B. Include his disagreements with Brandon as a factor when assessing the risk of fraud in the purchasing function.
• C. Have someone else perform the fraud risk assessment work related to the purchasing function
• D. Automatically designate the purchasing function as a high-risk area.

Which of the following steps should be incorporated into an organization's fraud risk assessment strategy to ensure the effectiveness of the fraud risk assessment?

• A. Solicit stakeholder input to quantify the organization's greatest fraud risks and total fraud losses.
• B. Assess the significance of each inherent fraud risk to the organization.
• C. Determine the ideal number of fraud response protocols that the organization should implement.
• D. Identify and reward the people and departments that are least likely to commit fraud.