ACFE Corporate Governance and Ethics 3

Question 1

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign official is explicitly permitted?

Accepted Answer

Facilitation payments to expedite routine government actions

Answer

The FCPA contains a narrow exception for 'facilitating payments' (also called grease payments) made to expedite routine non-discretionary government functions.

Question 2

Which component of the COSO Internal Control framework addresses the organization's commitment to integrity and ethical values?

Accepted Answer

Control Environment

Answer

The Control Environment is the foundation of COSO's framework and includes the tone set by management regarding integrity, ethics, and governance.

Question 3

A whistleblower who reports securities fraud under the Dodd-Frank Act is entitled to:

Accepted Answer

A monetary award of 10-30% of sanctions exceeding $1 million

Answer

Dodd-Frank provides whistleblowers with 10-30% of monetary sanctions collected in SEC enforcement actions exceeding $1 million.

Question 4

What governance structure characteristic is MOST associated with weak oversight and increased fraud risk?

Accepted Answer

Dominant CEO who also serves as board chairman

Answer

A CEO who also chairs the board creates a power imbalance where the executive can effectively control the body meant to oversee them, increasing fraud risk.

Question 5

Which of the following best describes 'regulatory capture' as an ethics concern?

Accepted Answer

A regulatory agency coming to advance the interests of those it is supposed to regulate

Answer

Regulatory capture occurs when a regulatory agency is dominated by the industry it is supposed to oversee, undermining independent oversight.

(ACFE) Association of Certified Fraud Examiners Practice Test

(ACFE) Association of Certified Fraud Examiners Practice Test

ACFE Corporate Governance and Ethics 3