Types of Corrupt Practices Quiz

16 Questions

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

Whistle-blowing

Which ethical principle emphasizes that the benefit from a decision must outweigh the risks?

Proportionality

In which situation might the implementation of a new computer information system within an organization lead to ethical concerns?

Resulting in downsizing and plant closures

What is a common ethical issue associated with questionable business practices in foreign countries?

Misleading advertising

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

Conflicts of interest

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

Making timely disclosures

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

Encouraging whistle-blowers

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

Sarbanes-Oxley Act

What is the primary purpose of preventive controls?

To reduce the frequency of undesirable events

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

Control environment

What is the main difference between Detective and Corrective controls?

Detective controls expose undesirable events, Corrective controls reverse the effects of errors

Why was the COSO framework designed?

As a management tool

What is the key difference between bribery and illegal gratuities?

The timing of the transaction

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?

Employee acting to benefit a third party

What distinguishes economic extortion from other forms of corruption?

Use of force or threat to obtain something of value

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

Skimming

Test your knowledge on different types of corrupt practices such as bribery, illegal gratuities, conflicts of interest, and economic extortion. Learn about the nuances and differences between these unethical behaviors.

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