Types of Corrupt Practices Quiz
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Questions and Answers

What is a key ethical issue related to employee and management conflicts?

  • Whistle-blowing (correct)
  • Workplace safety
  • Equal employment opportunity
  • Product pricing
  • Which ethical principle emphasizes that the benefit from a decision must outweigh the risks?

  • Equity
  • Corporate due process
  • Proportionality (correct)
  • Diversity
  • In which situation might the implementation of a new computer information system within an organization lead to ethical concerns?

  • Ensuring diversity in the workplace
  • Resulting in downsizing and plant closures (correct)
  • Improving product safety measures
  • Enhancing workplace safety protocols
  • What is a common ethical issue associated with questionable business practices in foreign countries?

    <p>Misleading advertising</p> Signup and view all the answers

    What type of ethical issue does the SEC written code of ethics address in relation to conflicts between personal and professional relationships?

    <p>Conflicts of interest</p> Signup and view all the answers

    Which aspect is covered under 'FULL AND FAIR DISCLOSURES' in the SEC written code of ethics?

    <p>Making timely disclosures</p> Signup and view all the answers

    What does the SEC code require regarding 'INTERNAL REPORTING OF CODE VIOLATIONS'?

    <p>Encouraging whistle-blowers</p> Signup and view all the answers

    Which legislation addressed declining investor confidence due to business failures and accounting restatements by enacting laws in 2002?

    <p>Sarbanes-Oxley Act</p> Signup and view all the answers

    What is the primary purpose of preventive controls?

    <p>To reduce the frequency of undesirable events</p> Signup and view all the answers

    Which component sets the tone for the organization and influences the control awareness of management and employees?

    <p>Control environment</p> Signup and view all the answers

    What is the main difference between Detective and Corrective controls?

    <p>Detective controls expose undesirable events, Corrective controls reverse the effects of errors</p> Signup and view all the answers

    Why was the COSO framework designed?

    <p>As a management tool</p> Signup and view all the answers

    What is the key difference between bribery and illegal gratuities?

    <p>The timing of the transaction</p> Signup and view all the answers

    In conflicts of interest, an employee may act on behalf of a third party or have self-interest during the discharge of duties. Which situation does a conflict of interest typically involve?

    <p>Employee acting to benefit a third party</p> Signup and view all the answers

    What distinguishes economic extortion from other forms of corruption?

    <p>Use of force or threat to obtain something of value</p> Signup and view all the answers

    What type of asset misappropriation involves stealing cash from an organization before it is recorded on the books?

    <p>Skimming</p> Signup and view all the answers

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