CFE-Fraud-Prevention-and-Deterrence Free Practice Test

Which of the following is FALSE regarding corporate governance'

1. A. Effective corporate governance practices are most necessary in an organization in which the owners are not also the individuals responsible for setting and executing the business strategy
2. B. Effective corporate governance practices are considered to be the foundation of fraud risk management.
3. C. Corporate governances primary purpose is to ensure the accuracy of the organization's financial reports
4. D. An entity's corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization.

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