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2017 SPRING SEMESTER
You can use any of the course materials in the online classroom to complete the quiz. You should not use any other materials. Take your time and think about each question. 1 page for each question Please submit your completed quiz as a Word document in the assignments folder. All work must be your own. The quiz is not timed.
Questions (each 25 points)
1. One of the findings in the ACFE Report to the Nations on Fraud is tips are more likely to initially detect fraud than management reviews, internal auditing and external auditing combined. Why do you think this is the case?
2. In order of importance in your judgment, briefly describe five specific steps an organization should take to mitigate the risk of fraud.
3. How is the risk of fraud in a company influenced both by type of industry and where the company does business?
4. Volkswagen admitted to programming their diesel engines to activate certain emissions controls only when the cars were being tested for compliance with emissions regulations. A number of executives have been indicted including the CEO, the head of brand development, the head of engine development, a supervisor in engine development, an individual who had responsibilities for overseeing quality control, and an individual who was a liaison between regulatory agencies and the carmaker.
Pick one of these individuals. In terms of the Cressey fraud triangle, do you believe the individual’s primary motivation was rationalization, perceived opportunity or pressure? Briefly explain how you came to your conclusion.