Ethics, Fraud, and Internal Controls

What is the main focus of business ethics?

• Achieving high profits

• Maintaining a positive public image

• Making ethical decisions

• Expanding market share

Which of the following is an example of an ethical issue in business?

• Providing a safe workplace

• Increasing executive salaries

• Misleading advertisement

• Installing a new computer system

What is the definition of fraud?

• An unintentional error

• A false representation made with the intent to deceive

• A conflict of interest

• An act of corruption

Which category of fraud involves intentional deception and manipulation of company data?

• Employee fraud

• Management fraud

• White-collar crime

• Irregularities

What is the term for the act of reporting company malpractices to regulatory bodies?

• Whistleblowing

• Misappropriation

• Bribery

• Conflict of interest

Which type of fraud involves stealing cash before it is recorded?

• Skimming

• Cash larceny

• Billing scheme

• Payroll fraud

What is the main objective of internal controls?

• Maximizing profits

• Ensuring process efficiency

• Preventing fraud

• Achieving compliance

Which of the following is an example of a physical control?

• Authorization

• Supervision

• Segregation of duties

• Access control

What type of control involves inspecting and verifying transactions by an independent person?

• Authorization control

• Supervision control

• Segregation of duties control

• Independent verification control

Which type of control involves checking the validity and reasonableness of data?

• Physical control

• IT control

• Monitoring control

• Authorization control