Risk Management & Compliance Leadership Quiz

How did Wirecard manipulate its reported revenues in opaque environments?

• By underreporting revenues to avoid taxes

• By inflating revenues in unregulated markets

• By engaging in illegal activities with competitors

• By using third-party processors for all transactions

How did Wirecard manipulate its reported intangible assets and goodwill balances?

• By underreporting the value of its acquisitions

• By inflating the value of its customer relationships

• By falsifying gross profits to avoid impairment testing

• By engaging in illegal activities with competitors

Which two banks were alleged to house the falsified escrow accounts?

• Bank of the Philippine Islands and Banco de Oro Unibank

• Union Bank of the Philippines and RCBC

• Security Bank and Land Bank

• DBS and OCBC

What was identified as a significant fraud risk factor for Wirecard, according to Michael C. Jensen’s agency theory?

• Lack of corporate governance

• Overvaluation of equity

• Ineffective auditors

• Poor management practices

What challenge did the fintech industry present to auditors and regulators according to the document?

• Lack of financial literacy

• Complexity and underregulation

• High transparency

• Abundant regulatory guidelines

What were the consequences faced by Wirecard's management, particularly the former CEO Markus Braun?

• Fines and community service

• Suspension from the financial industry

• Public apology and resignation

• Financial losses and imprisonment

From where did Alameda mostly obtain its funding?

• Bank loans

• Stock sales

• Customer deposits

• Government grants

What basic measures did FTX fail to implement, according to the bankruptcy filing?

• Segregating duties and establishing a system to keep track of accounts

• Conducting regular audits of internal controls

• Hiring an in-house accounting department

• Implementing advanced financial technologies

What was the negative balance shown in FTX’s leaked balance sheet?

• $5 billion

• $6 billion

• $7 billion

• $8 billion

What criminal charges were filed against Bankman-Fried?

• Money laundering

• Wire fraud

• Campaign finance violations

• All of the above