30 Questions
What is the responsibility of the internal audit staff?
Review internal control systems
Why is it important for financial reports to be supported by legal documents and proofs?
To make the financial reports reliable and acceptable
What is the role of the independent auditor in a company?
Examine financial records and transactions
Why should assets be adequately validated and accounted for?
To safeguard against misuse or theft
What do senior management personnel in a company typically oversee?
Participating in daily supervision and planning
What is the primary responsibility of the financial management team?
Establishing safeguards for assets
What is a common method through which employees commit fraud by transferring funds to their own bank account?
Abusing authorization codes to transfer funds
Which type of assets are susceptible to theft due to their high resale value and lack of secure attachment?
Fixed assets
In what situation might an employee use false receipts to claim additional expenses?
To charge extra expenses in expense reports
What fraudulent activity involves employees not reimbursing the company for used supplies and inventory?
Nonpayment of employee advances
Which indicator of high-level fraud involves creating an overly complicated organization structure?
Creating complex organization structures
How can employees misuse their authorization codes for fraudulent activities?
Transferring funds to their bank account
What is a common fraudulent scheme mentioned in the text?
Collusion with suppliers to inflate costs in exchange for kickbacks
What is the primary responsibility of the Board of Directors mentioned in the text?
Providing oversight and giving directives to management
What makes it difficult to trace or track transactions in the scenario described?
Numerous interlocked departments and organizations
What might happen if a management team solely focuses on meeting profit goals?
Creation of biases and manipulations in financial reporting
What is a consequence of employees taking advantage of authorization systems according to the text?
Difficulties in managing and tracking transactions
How can fraud involving inflated costs be prevented within a company?
Implementing strong internal controls and monitoring mechanisms
What is a potential consequence of a management team using loose interpretations of accounting rules and manipulating revenue?
Risk of large-scale fraud
What is a characteristic of a company being run by one dominant individual with full control and authority?
Risk of misuse of power for personal gain
What might be a reason why management prefers excessive decentralization?
Minimized control from the headquarters
What could be a consequence of high management turnover within a company?
Disruption in operations and decision-making
Why might customers or suppliers sue a company according to the text?
As a result of payment issues or incomplete services
What is the potential impact on a company's image and reputation if it is entangled in lawsuits with customers or suppliers?
Negative effects on reputation and image
What does CAPTCHA stand for?
Completely Automated Public Turing test to tell Computers and Humans Apart
What is the main goal of a Privacy Impact Analysis/Assessment (PIA)?
To avoid privacy issues associated with collecting, maintaining, and distributing PII
Which type of fraud involves using fabricated credentials not associated with a real person?
Synthetic identity fraud
What is the purpose of limiting outgoing connections for business purposes?
To protect information assets from unauthorized access
Why do most people using one password everywhere pose a security risk?
It exposes all accounts if one password is compromised
What is the objective of a strategy in the context provided?
To achieve a specific goal through an action plan
Explore different types of fraud like inflated costs arrangements with suppliers and theft of cash and investments within organizations. Learn about the role of the board of directors in possessing sound knowledge and providing directives for effective internal control.
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