RCMS RCMS Financial Crimes & Fraud Prevention 2

Question 1

What does the 'fraud triangle' model identify as the three elements necessary for occupational fraud to occur?

Accepted Answer

Pressure, opportunity, and rationalization

Answer

The fraud triangle, developed by Donald Cressey, identifies pressure, opportunity, and rationalization as the three conditions that enable fraud.

Question 2

Which U.S. agency is primarily responsible for enforcing the FCPA's anti-bribery provisions against U.S. companies?

Accepted Answer

Department of Justice (DOJ)

Answer

The DOJ holds primary responsibility for criminal enforcement of FCPA anti-bribery provisions, while the SEC handles civil enforcement for issuers.

Question 3

A company's compliance program should include a financial fraud risk assessment that is performed at minimum:

Accepted Answer

Periodically and when significant organizational changes occur

Answer

Fraud risk assessments should be conducted periodically and updated whenever significant changes occur, such as mergers, new products, or leadership changes.

Question 4

Which financial statement fraud scheme involves recording revenue that has not been earned?

Accepted Answer

Fictitious revenue scheme

Answer

A fictitious revenue scheme records sales or income that never occurred, inflating financial results to mislead investors or lenders.

Question 5

What is the primary purpose of a 'hotline' in a financial crimes compliance program?

Accepted Answer

To provide an anonymous channel for reporting suspected fraud or misconduct

Answer

Hotlines give employees and third parties a confidential way to report suspected fraud, which is the most common method for detecting occupational fraud per the ACFE.

(RCMS) Registered Compliance Management Specialist Certification Practice Test

(RCMS) Registered Compliance Management Specialist Certification Practice Test

RCMS RCMS Financial Crimes & Fraud Prevention 2