Which of the following is NOT a responsibility of the organization s board of directors?

1. A. Acting as guardians of the organization s resources and assets
2. B. Managing the performance of employees charged with carrying out business activities
3. C. Assessing the strategy and underlying purpose of management's decisions and actions
4. D. Serving as the middlemen between shareholders and management

Correct Answer: D

Open-door management policies are a fraud prevention mechanism that addresses which leg of the Fraud Triangle?

1. A. Opportunity
2. B. Willingness
3. C. Lack of integrity
4. D. Pressure

Correct Answer: A

Which of the following statements regarding white-collar defendants is TRUE?

1. A. The lower the offenders' social status, the more likely they are to be imprisoned
2. B. They are more likely to be fined than to face prison terms as punishment
3. C. They are less likely to insist on a trial than other offenders
4. D. All of the above

Correct Answer: B

Professional auditing standards suggest that auditors incorporate an "element of predictability" in the selection of auditing procedures to be performed so that they ensure the same areas are tested in the same manner during each audit.

1. A. True
2. B. False

Correct Answer: A

Which of the following is NOT a purpose served by a professional organization s code of conduct?

1. A. It provides more direct solutions to professional ethical dilemmas than might exist under general ethical principles
2. B. It serves as a reference and benchmark for ethical guidance
3. C. It provides clear answers to all ethical dilemmas the organization s members might face
4. D. It facilitates practical enforcement and profession-wide internal discipline

Correct Answer: B