Question 2. . Which of the following statements is false?

Question 2.

. Which of the following statements is false?

1. The SEC requires all corporations to have fraud prevention plans.
2. Risk management should be adequate to eliminate residual risk.
3. Responses to risk include avoidance, transfer, and allocution.
4. The tone at the top is best assessed by focus groups of lower level employees.

a.            I only.

b.            I and II only.

c.             I, II, III, and IV.

d.            II and III only.