Legit CFE-Fraud-Prevention-and-Deterrence Exam Download

General Approaches to Control Corporate Crime:

Common approaches include government intervention, consumer action, and voluntary corporate changes.

Financial institution funding is not typically listed as a direct control mechanism for corporate crime.

Analysis of Options:

B. Government intervention:Effective through regulation and enforcement.

C. Consumer action:Encourages ethical practices through market pressures.

D. Voluntary corporate changes:Demonstrates internal commitment to compliance.

Conclusion:Withdrawal of financial institution funding is not one of the recognized general approaches.

Comprehensive and Detailed in Depth Explanation:

Management is ultimately responsible for setting the ethical tone of an organization, often referred to as the "tone at the top." This tone influences the overall ethical culture, guiding employee behavior and setting the standard for compliance and integrity. While legal, HR, and fraud professionals play supporting roles, it is leadership’s responsibility to establish, model, and reinforce ethical conduct.

Internal Audit Reporting Responsibilities:

Internal audit must maintain open communication with senior management and the board to ensure appropriate handling of fraud-related issues.

Establishing reporting protocols in advance ensures timely and consistent responses when fraud occurs.

Analysis of Other Options:

B. Periodic reporting is optional:Reporting fraud risks is a required responsibility.

C. Non-disclosure:Fails to fulfill the role of internal audit in governance and accountability.

D. No communication with the board:Misrepresents the internal audit's role in fraud oversight.

Conclusion:Discussing reporting protocols proactively with senior management and the board is the correct approach.