AE-3 Q.7

1. A theory which basically states that a trusted person can commit fraud if given the motivation, opportunity and justification.

• Fire Triangle
• Bermuda Triangle
• Fraud Triangle
• Triangle Offense

2. Actions supported by policies and procedures that when carried out properly and in a timely manner, manages or reduces risk.

• Control environment
• Control activities
• Risk assessment
• Monitoring

3. The following is an aspect of a control environment, except:

• Organizational chaos
• Organizational structure
• Integrity and ethical values
• Commitment to competence

4. It is designed to remedy the effects caused by adverse events and restore back to the state prior to a harmful event.

• Preventive controls
• Detective controls
• Corrective controls
• Control activity

5. The following are the facets of risk assessment, except:

• Identify control risks
• Identify risks
• Assess the risks
• Manage the risks

6. It requires the intentional deception of another to benefit oneself or to cause damage to another.

• Irregularities
• Errors
• Fraud
• Malice

7. It involves the theft of an entity’s assets and is often perpetrated by employees in relatively small and immaterial amounts.

• Fraudulent Financial Reporting
• Misappropriation of Assets
• Fraud
• Errors

8. A way of limiting an individual's power over a task within a business.

• Establishing responsibility
• Segregation of duties
• Physical securities
• Computer passwords

9. Are systematic measures such as reviews, check and balances, methods and procedures instituted by an organization.

• Corporate governance
• Business ethics
• Risk management
• Internal control

10. Refers to adherence to laws and procedures to which the entity is subject.

• Operations
• Reporting
• Compliance
• Internal control